- High-priced rentals had highest rent growth in +7 years
- Lower-priced rentals showed rent growth lagging behind pre-pandemic levels
Single-Family Rent Growth Continued Strong Growth in January 2021
On a national level, US single-family rent growth during January flexed its muscles to increase +3.8% y/y, according to the CoreLogicSingle-Family Rent Index (SFRI).
This +3.8% growth rate in single-family rent compares well with the low of 1.4% reported in June 2020 and 2.9% reported in January 2020.
Single-Family Rent Growth by Unit-Price Tier
Single-family rent growth rates reflect the nation’s uneven or “K-shaped” recovery. Low-end price tiers are increasing only slightly, just +2.9% y/y, and remain down from 3.7% growth levels in January 2020
On the other end of the spectrum, high-end price tiers increased +4.2% in January 2021, up from +2.5% in January 2020. This is the fastest uptick in rent growth since August 2013.
Highs and Lows in Metro-Level Rent Growth Results
Of the 20 metros measured and analyzed by CoreLogic’s SFRI, Phoenix, as it has since late 2018, reported the highest y/y rent growth in January at +11%. Coming in respectively in second and third place were Tucson AZ at +9.8% and Charlotte NC at +7.6%.
Seven of CoreLogic’s 20 metros registered lower rent growth in January 2021 than in January 2020. Boston came in first in the unwanted category of “metro with the largest deceleration in rent growth” with a drop of -12.9% points compared with January 2020. Chicago came in second, -4.2% points lower than one year earlier.
The more remote workers wanting more space coupled with fewer affordable homes available for purchase equals increasing rent growth as single-family rental vacancy rates get tighter and tighter.
Thanks to CoreLogic.
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