- According to CoreLogic, rent prices for single-family homes grew +2.5% y/y in September
- This +2.5% rent price growth represents biggest growth rate since pandemic outbreak
- Rent price growth driven by mid-to-high priced rentals
Single-family rent prices increased +2.5% y/y in September 2020, according to CoreLogic’s Single-Family Rent Index (SFRI). Nationally, single-family rent price growth came in just half a percentage point below pre-pandemic rates.
Both low-priced rentals (defined by CoreLogic as properties with prices less than 75% of the regional median) and high-priced rentals (properties with prices more than 125% of region’s median price) grew at approximately the same rate in September with low-priced rentals increasing +2.4% y/y and high-priced rentals increasing +2.3%. This similar growth rate in high and low price points is much different from the preceding six-year trend of low-priced rentals showing significantly faster price growth rates.
Among the 20 metros analyzed by this most recent SFRI, Phoenix continued in first place as the metro with the highest year-over-year rent growth in September at +6.9%. (Phoenix has held first place since late 2018.) Tucson followed Phoenix with a y/y rent growth of +6.2% and Charlotte snagged third at +4.3%. Las Vegas, Atlanta, Dallas and Austin rounded out the field with rent price growth rates just slightly under 4.3%
Boston put on the worst showing with its rent price growth decelerating annually at -5.7%. Being that Boston is home to some 35 colleges and universities, it was not surprising that the metro’s rent price growth was so hard hit…the bulk of students are learning virtually. Honolulu’s rent price growth was second to last at –0.5%, again not surprising since the COVID pandemic essentially knocked out the metro’s tourism industry. Honolulu’s 16.3% y/y unemployment rate in September also didn’t help. Rent price growth was marginal at best in the metros of Chicago, Miami and Los Angeles.
Thanks to CoreLogic and InmanNews.