No wonder investors are flocking to buy single-family rental properties. The June 2021 increase in single-family rentals of +7.5% y/y was more than 5 times the June 2020 increase.
Overall Single-Family Rent Growth
Single-family rent growth jumped +7.5% y/y in June 2021. This +7.5% y/y uptick in single-family rents was the fastest year-over-year rent increase since at least January 2005, according to CoreLogic Single-Family Rent Index (SFRI).
(CoreLogic’s measurement index includes single-family rental homes as well as condominiums. )
June 2021’s single-family rent growth increase was more than five times that of June 2020. It is also performing well above pre-pandemic levels in 2019.
Single-Family Rent Growth by Price Tiers
Rent prices for the low-price tier (properties with rent prices less than 75% of the region’s median rent) increased +5.2% y/y in June 2021. This +5.3% uptick in low-price tier rents was the fastest uptick in low-price rents since May 2006.
High-price tier rent prices jumped +9.6% in June 2021, a substantial gain from June 2020’s increase of +1.2%. This +9.6% rent increase in high-price tier rents was the fastest in the history of the SFRI.
Single-Family Rent Growth for Detached Properties Double the Rent Growth of Attached Properties
Detached properties (free-standing residential buildings) are much preferred over attached properties (duplexes, triplexes, quadplexes, townhouses, row-houses, condos and co-ops) by potential homebuyers.
Annual rent growth for detached, free-standing rentals hit an increase of +10.5% y/y in June 2021 while attached rentals increased +4.6% y/y.
Metro-Level Single-Family Rent Growth
Among the 20 metro areas analyzed by CoreLogic for this latest Single-Family Rent Index, 18 of the 20 metros experienced year-over-year rent growth increases. Only Boston (-2.8% y/y) and Chicago (-1.5% y/y) showed a deceleration in rent prices.
Metros with the highest year-over-year rent growth in June 2021 included:
- Phoenix – +16.5% y/y
- Las Vegas NV – +12.9% y/y
- Tucson – +12.5% y/y
Thanks to CoreLogic.