Key Highlights
- According to CoreLogic’s Single-Family Rent Index (SFRI), there an increase of +1.7% y/y in rent nation-wide for July 2020, down from increase of +2.9% y/y in July 2019
- From average of rent price growth of +2.9% in Q1 to +1.7% in May and +1.4% in June, national rent price growth rate stabilized for first time since February
The COVID-19 pandemic caused a chain reaction in the country’s rental market. Unemployment rates mushroomed, incomes plummeted and landlords lowered their monthly rates in hopes of salvaging their tenant pools.
Download Your FREE Ultimate Agent Survival Guide Now. This is the exact ‘do this now’ info you need. Learn NOW How to Access All The Bailout Program Cash You Deserve. Including Unemployment and Mortgage Forbearance Plans. To Access the Ultimate Agent Survival Guide Now Text The Word SURVIVAL to 47372. 4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & privacy: slkt.io/JWQt
Molly Boesel, principal economist with CoreLogic, said, “Increases in single-family rent prices slowed dramatically this spring (see above) as the nation began to face the economic impact of the pandemic. As job losses slowed in July, rent growth steadied. However, increases in rents should remain sluggish until the economy starts to experience employment gains.”
CoreLogic breaks out four tiers of rental prices to get an accurate look at single-family rental prices. Take a look:
- Lower priced (75% or less than regional median) – +2.6%, down from +3.7% in July 2019
- Lower-middle priced (75% to 100% of regional median) – +1.8%, down from +3.1% in July 2019
- Higher-middle priced (100% to 125% of regional median) – +1.7%, down from +2.8% in July 2019
- Higher priced (125%+ of regional median) – +1.4%, down from +2.5% in July 2019
Here are rent changes y/y from June 2020 to July 2020 in some geographical areas of the country:
Metro July 2020 y/y Changes June 2020 y/y Prices
Phoenix AZ +4.7% $1,664
Tucson AZ +4.1% $1,490
Charlotte NC-SC +3.4% $1,423
Atlanta GA +2.8% $1,475
Las Vegas NV +2.7% $1,745
St. Louis MO-IL +2.5% $1.213
Seattle WA +2.3% $2,664
Austin TX +2.3% $1,625
Dallas TX +2.2% $1,690
Detroit MI +2.0% $1,365
Washington DC +1.9% $2,473
Philadelphia PA +1.8% $1,329
Houston TX +1.8% $1,482
San Diego CA +1.8% $2,763
Orlando FL +1.7% $1,656
Chicago +0.3% $1,870
Boston MA -0.2% $2,603
Miami FL -0.3% $2,059
Los Angeles CA -0.4% $2,803
Urban Honolulu -1.3% $2,982
CoreLogic forecasts that if there is a resurgence of the COVID-19 virus in metro markets, “we expect to see further disruption of local rental markets.”
Thanks to CoreLogic.
Also read: March Home Sales Dropped -8.5% – More Than Expected, Redfin’s Housing Market Forecast for 2020, Idaho #1 in Home Price Appreciation
