Annual rent growth hits record year-over-year in March, CoreLogic reports
- Rise in single-family home rents in the United States has tripled again compared to March 2021
- Miami remains the nation’s hottest rental market, with prices up nearly 41% year-over-year
IRVINE, Calif., May 17, 2022 — CoreLogic, a leading global provider of property data-driven insights, analytics and solutions, today released its latest Single Family Home Rent Index (SFRI), which analyzes changes in single-family home rent prices nationally and in major metropolitan areas.
Growth in U.S. single-family home rent prices continued at a record pace in March, up 13.6% from a year earlier. Low inventory continues to squeeze renters, as do sharp increases in home prices – two well-known culprits for declining affordability. As in previous months, the warmer regions of the country continued to experience the strongest growth in rental costs, with prices in two major Florida metropolitan areas increasing at about two to three times the national rate.
Year-over-year growth in U.S. rent prices once again more than tripled the gain seen in March 2021 and more than quadrupled the increase from March 2020. Price appreciation rents slowed in early 2020 due to uncertainty surrounding the coronavirus (COVID-19) pandemic but rebounded in the fall of this year to surpass its pre-pandemic rate.
“A shortage of single-family properties available for rent has plagued the market, pushing rents to record rates,” said Molly Boesel, senior economist at CoreLogic. “The number of single-family rental properties listed at the start of 2022 was well below pre-pandemic levels and continued to decline from a year ago.”
To get a detailed view of rental prices for single-family homes, CoreLogic looks at four levels of rental prices. National growth in single-family home rents across all four levels and year-over-year changes were as follows:
- Cheaper (75% or less than the regional median): 12.4%, compared to 3.3% in March 2021
- Lower average price (75% to 100% of the regional median): 14.1%, compared to 3.5% in March 2021
- Upper middle price (100% to 125% of the regional median): 14.6%, compared to 3.8% in March 2021
- More expensive (125% or more than the regional median): 13%, compared to 5.3% in March 2021
Of the 20 metro areas shown in Table 1, Miami once again posted the largest year-over-year increase in single-family rents in March 2022 at 40.7%, more than 10 times its annual growth rate. of March 2021 by 3.8%. Orlando, Florida and Phoenix posted the second and third highest gains at 24.6% and 18.6%, respectively, as Americans continue to seek warmer climates. These three metro areas have seen the highest year-over-year rent increases in the nation since December 2021. Washington (7.6%) and St. Louis (7.5%) saw the lowest annual growth rental prices in March.
Differences in rent growth by property type emerged after the onset of COVID-19, with renters seeking stand-alone properties in low-density areas. This trend has led to an acceleration in rent growth for single rentals in 2021, while gains for attached rentals have been more subdued. However, as rental inventory remains thin, the gap between semi-detached and detached growth began to close last fall. In March 2022, prices for attached rental properties rose 13.2% year-over-year, compared to the 13.3% increase recorded for single-family homes.
The next CoreLogic Single-Family Rent Index will be released on June 21, 2022, with data for April 2022. For current housing trends and data, visit the CoreLogic Intelligence blog: www.corelogic.com/intelligence.
The single-family rental market accounts for half of the rental housing stock, but unlike the multi-family market, which has many different sources of rent data, there is minimal quality-adjusted single-family rental transaction data. The CoreLogic Single Family Rent Index (SFRI) serves to fill this void by applying a repeated matching methodology to data from single family rental listings in the multiple listings service. CoreLogic has constructed the SFRI for nearly 100 metro areas – including 47 metros with four value levels – and a national composite index.
The CoreLogic Single-Family Rent Index analyzes data on four price points: lowest prices, which represent rentals priced 75% or below the regional median; lower-middle, 75% to 100% of the regional median; upper-middle, 100% to 125% of the regional median; and more expensive, 125% or more above the regional median.
Median rental price data is produced monthly by CoreLogic RentalTrends. RentalTrends is built on a database of over 11 million rental properties (over 75% of all privately owned rental properties in the United States) and covers all 50 states and 17,500 zip codes.
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