High-End Properties Drive Greatest Rent Growth in Over 14 Years

Key Highlight

• High-priced rentals posted highest rent growth since 2006
• Detached rental properties spurred +5X rent growth over attached properties

Single-Family Rent Growth by Price Tier

Single-family rent growth in the US jumped +4.3% y/y in March 2021, according to CoreLogic’s most recent monthly Single-Family Rent Index (SFRI).

Looking between the lines of this overall rent growth, the biggest gain since 2006, to different price rent tiers, CoreLogic found that the high-price rent tier drove this growth.

(The high-price tier is defined as properties with rent prices more than 125% of a region’s median rent.  The low-price tier is defined as properties with rent prices less than 75% of region’s median rent.)

Higher-priced rentals jumped +5%y/y in March 2021.  This +5% increase rental growth was the fastest increase in higher-price rentals since August 2006.

Conversely, lower-end tier rents increased +3.2% y/y in March 2021. This +3.2% increase within the low-price tier continues to be below pre-pandemic levels.  This data point is consistent with the fact that lower-wage workers have been disproportionately affected by the COVID recession.

Single-Family Rent Growth by Property Type

Detached single-family properties saw a record high in rent growth in March 2021.  That rental growth jumped +6.9% y/y.

Meanwhile, rent prices for attached properties (duplexes, triplexes, quad-plexes, townhouses, row-houses, condominiums and co-ops) saw a meager +1.3% y/y increase in March 2021, down from 2.7% in March 2020.

Metro-Level Changes in Rent Growth

CoreLogic’s SFRI also tallied rental growth changes in 20 large metro areas during the March 2021 period.

Metro areas with the highest year-over-year gains in rent growth during March 2021 included:

• Phoenix – +11.4%
• Tucson – +10.4%
• Atlanta – +8.1%

Metro areas with the highest declines in rent prices included:

• Boston – -7.7%
• Chicago – -2.9%
• Louis – -0.6%

Thanks to CoreLogic.

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