No wonder investors are flooding the single-family home sector. Rents jumped +10.2% in September.
Single-Family Rent Growth Increases +10.2% y/y
According to the newly released CoreLogic Single-Family Rent Index (SFRI), single-family rent growth jumped +10.2% in September.
September 2021’s single-family rent increase was almost four times that of September 2020 and, despite cooling a bit during the summer, rent growth is well ahead of pre-pandemic levels when compared with 2019.
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Single-Family Rent Growth by Price Levels
Rent growth for all price points increased in September although high-tier rentals showed the highest rent increase at +11% y/y. Rent growth for low-price level increased +8.3% y/y. For both these low and high-price levels, September’s increases were the fastest increases in the history of the SFRI.
Rent Growth by Property Type
Potential buyers who have been priced out of the for-sale market or who have no yet been able to find a home due to inventory shortages prefer detached single-family rental homes. Due to this higher demand, detached single-family home rents increased +12.2%.
Attached single-family rentals that include duplexes, triplexes, quadplexes, townhouses, row houses, condominiums and co-ops saw rent increases of +7.8% in September.
Single-Family Home Rental Increases by Metro
Al 20 metros analyzed by CoreLogic saw higher rent growth in September 2021 than one year earlier.
Take a look at the top standouts:
- Miami – +25.7% y/y
- Phoenix – +19.8% y/y
- Las Vegas – +16% y/y
- Austin – +15% y/y
- San Diego – +15% y/y
- Dallas – +14% y/y
- Tucson – +13.1% y/y
- Atlanta – +13% y/y
- Orlando – +12%
- Charlotte – +11% y/y
Chicago had the lowest rent increase at +2.8% y/y. Boston showed a significant increase in rent growth, +4%, from a year ago when rents decreased -3.3%.
Demand for Single-Family Home Rentals Near Record Highs
Due to strong job and income growth plus extreme competition, single-family rental vacancy rates were at 25-year lows during Q3 2021.
CoreLogic anticipates that single-family home rent growth should continue to be strong in the near-term, particularly as the labor market improves.
Thanks to CoreLogicc.