Rent for a typical  single-family rental property increased +8.5% in July after rent prices jumped in June to their highest level since 2005.

Rent Prices for Single-Family Properties on Skyrocketing Tear

The just released CoreLogic Single-Family Rent Index report tells us that rent prices for an average single-family home jumped another +8.5% y/y in July after June’s increase of +7.5%.

This +8.5% increase, up from 1.7% since July 2020, represents a fivefold increase in rent prices for the second consecutive month.  This +8.5% increase also represents a 16.5-year rent price high.

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How could such lightening growth in single-family rental prices be happening?  The quick (and accurate) answer is two-fold:  a shortage in inventory and the over-the-moon home values that go along with single-family inventory shortages over these last five years.

According to Molly Boesel, principal economist with CoreLogic, “Single-family rent prices continue to climb as national economic recovery, the overcrowded purchase market and deficient inventory puts pressure on the rental market.  With eviction moratoriums coming to a close this fall, and single-family rental inflation showing no signs of slowing over the next several months, affordability challenges may begin to pose a more urgent concern for renters.”

Single-Family Rent Changes for Some Metros

As you will note in this chart, single-family home rental growth is running well above pre-pandemic levels compared those levels in 2019.

Phoenix again stands out with the highest year-over-year rent growth as it has for nearly all of the last three years.

Metro           7/21 Rent Changes    6/21 Median Rents

Phoenix             +18.9%                       $1,830

Miami                 +17.0%                       $2,184

Las Vegas           +14.3%                       $1,934

Tucson                +13.9%                       $1,685

Austin                 +13.6%                       $1,793

Dallas                 +12.6%                       $1,814

Charlotte             +11.0%                       $1,588

Atlanta                +10.3%                       $1,647

San Diego            +10.1%                       $3,066

San Francisco        +10%                          NA

Houston                +9.2%                         $1,562

Seattle                  +8.8%                         $2,882

Orlando                 +8.2%                         $1,675

New York               +6.2%                         $2,767

Los Ángeles            +6.0%                         $3,072

Honolulu                 +5.7%                         $3,142

St. Louis                 +4.7%                         $1,321

Washington             +4.1%                         $2,523

Philadelphia             +2.9%                         $1,496

Chicago                   +0.2%                         $1,976

Boston is the only one of 20 metros that saw its annual rent decline in July.

Rent Price Increases by Property Tiers

Higher-end single-family homes (worth 125%+ of an area’s median price) experienced the largest rental price increase (and the fastest increase in high-price rents in the history of the SFRI) at +9.8%.  Higher-middle priced single-family home rental saw increases of +8%.  Lower-middle tier single-family home rentals experienced an increase of +7.2% in July and lower-prices single-family rental homes saw an increase of +5.9% (the fastest rent price increase in low-price rents since April 2006).

Also, rent growth for single-family detached home rentals (+10.4%) was more than twice that of single-family attached home rentals (+4.5%).

Thanks to CoreLogic.

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