CoreLogic’s latest Single-Family Rental Index (SFRI) tells us that single-family rents increased +2.9% y/y in November 2018, a +2.8% increase over November 2017.
Overall growth in the SFRI during November 2018 was propped up by low-end rentals, properties with rents 75% less than the specific region’s median rent. Low-end rentals increased +3.8% y/y, -0.2% lower than during November 2017. Rents on higher-priced homes, rents more than 125% of the region’s median rent, increased +2.6% y/y, +0.3% more than in November 2017.
Single-family rents have steadily climbed since 2010 through 2018. For the past 12 months, rent increases have stabilized, fluctuating between 2.7% – 3.2%.
Obviously, single-family rent growth varies significantly across regions and metro areas year over year. Las Vegas showed the greatest rental growth in single-family rentals with an increase of +6.7% y/y. Phoenix showed a +6.1% y/y. And Orlando showed a +5.3% y/y growth in single-family rentals during November 2018. Orlando also had the strongest year over year job growth increases of all 20 metros included in CoreLogic’s SFRI in November 2018. Orlando had an increase of+4.8% in job gains compared to the national employment growth rate of 1.6%.
Miami had the greatest acceleration in rent growth during November 2018. Its rent growth increased +3.3% faster than in November 2017.
The only metro of the 20 metros researched by CoreLogic SFRI to show a decrease in single-family rents was Seattle. Seattle’s single-family rent growth fell -0.7% when compared with November 2017 to an easing by -5.1% points.