Yearly single-family rent growth soared +10.9% y/y in October.
Annual Single-Family Rent Growth Skyrocketing
For the sixth consecutive month, single-family rent growth hit record-setting heights in October. Single-family rent growth soared +10.9% y/y, more than three times the growth rate of a year ago at the fastest growth pace in over 16 years, according to October’s CoreLogic Single-Family Rent Index (SRI).
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Single-Family Rent Growth by Price Tier & Property Type
Higher-priced single-family rentals had higher rent growth than lower-priced rentals. The high-priced rent tier is defined as properties with prices greater than 125% of the region’s median rent. The low-priced rent tier has rental prices less than 75% of the region’s median rent.
Take a look:
- Low tier – +9.5% y/y
- Low-middle tier – +10.1
- Higher-middle tier – +11.3%
- High-tier – +11.4% y/y
Detached single-family dwellings (free-standing residential buildings) have been the preferred property type since the pandemic onslaught. Annual rent growth for detached rentals hit +12.3% y/y in October.
Attached single-family dwellings (duplexes, triplexes, quadplexes, townhomes, row-houses, condominiums and co-ops) in higher density areas saw an annual rent growth of +9% y/y in October, according to CoreLogic’s SRI.
“Owner-Occupants Being Pushed Out”
John Burns, CEO of Joh Burns Real Estate Consulting, said, “Owner-occupants are being pushed out by investors in certain markets. It’s significant in Phoenix. It’s significant in Charlotte and significant in Atlanta, right around the $250,000 to $400,000 range.”
Housing starts for single-family rentals, particularly in outlying suburbs where these units are most prevalent, hit record levels in Q3 2021, according to the National Association of Home Builders.
Vacancy rates on single-family rental homes are now at a 25-year low that reflects the increasingly competitive and pricey nature of the for-sale housing market.
Single-Family SRI Year-over-Year Percent Change in 20 Markets during October
All metros listed here had higher rent growth than last year. Chicago had the lowest increase while Boston showed significant improvement from last year when rents fell 4.2%.
- Miami FL – +29.7%
- Phoenix AZ- +19.3%
- Las Vegas NV – +16.0%
- San Diego CA – +15.0%
- Dallas TX – +15.0%
- Austin TX – +15.0%
- Orlando FL – +14.0%
- Atlanta GA – +14.0%
- Tucson AZ – +12.0%
- Charlotte NC – +12.0%
- Houston TX – +10%
- Seattle WA – +9%
- Honolulu HI – +8%
- Los Angeles CA – +7%
- Boston MA – +6%
- Louis MO – +6%
- Philadelphia PA – +6%
- New York NY – +6%
- Washington DC – +5%
- Chicago IL – +4.2%
Thanks to CoreLogic and CNBC.
