CoreLogic: Single-family rental growth falls to four-year low
Single-family rental properties in the U.S. posted a 2% increase in rents for the year ending September 2024, according to the latest report. That's down from a 2.4% annual increase in August.
A property data and solutions company with annual earnings well below the pre-pandemic (SFR) growth rate of 3.5%. Detached rentals – or independent properties – saw rent growth fall to 2%. This marked two straight months of price increases for private rents, following annual increases of 2.6% in July and 2.3% in August.
“Year-over-year single-family rent growth fell to a four-year low in September, and monthly rent growth showed a second straight month of below-seasonal trend growth, clearly indicating that single-family rent growth is slowing,” Molly Boesel said. CoreLogic's chief economist said in a statement.
“While nearly a third of metros showed stronger rent growth than the previous year, more metros saw rent declines compared to the previous report. While the slowdown in rents is good news for renters, increases since 2020 are still at 32%.
CoreLogic also noted that the drop in SFR prices , and .
Among the 20 metro areas tracked by CoreLogic, it led the way with the highest annual SFR growth at 5.2%, followed by Seattle (5%) and New York (4.9%). In August, Seattle leads the way (5.8%), followed by New York (5.5%) and Washington (5.5%).
Detroit ($1,764) posted the second-lowest average monthly rent after Philadelphia ($1,656). Three of the top five areas for annual rent growth in September ( and ) had median prices over $3,000. In Chicago (ranked 4th), the average rental price was $2,663.
CoreLogic's monthly SFR index analyzes rents at four price levels. Low-cost rents are those below the regional median. Low-to-mid-range rents range from 75% to 100% of the regional median. Higher mid-range rents are between 100% and 125% of the regional median, while high-end rents are above 125% of the regional median. CoreLogic surveyed properties in nearly 100 U.S. metros, including 43 that cover all four tiers.
The report noted that price increases for high-end rentals outstripped the lowest-priced properties. CoreLogic explained that this is a sign that some tenants are taking advantage of the increased economic breathing room.
