CoreLogic: US Annual Rental Price Growth Rate Inches up to Highest ...

• Single-family rents rose by 3.2% year over year in May, the highest rate of growth since April 2023.
• May's annual rent growth was generally in line with numbers recorded over the decade before the pandemic.
• St. Louis, the least expensive of the 20 tracked markets, again led the nation for growth in May. Austin, Texas and Phoenix posted slight annual losses.

IRVINE, Calif., July 18, 2024-CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and across major metropolitan areas.

As U.S. housing affordability remains near an all-time low due to elevated prices and higher mortgage rates, many Americans continue to rent, which is prompting continued demand and slow but steady price increases. In May, all four cost tiers saw annual gains, with only the lowest tier below the national growth rate. Also, as the U.S. unemployment rate remains near a decade low and wages continue to rise, many tenants are able to keep up with rent increases and generally high costs, especially in expensive coastal markets, where the median monthly rent exceeds $3,000.

"Single-family rent growth regained strength in May, increasing to the highest annual growth rate since April 2023," said Molly Boesel, principal economist for CoreLogic. "Monthly rent growth also picked up in May and was above what is typically recorded in spring months."

"While the annual rent growth in higher-priced properties picked up momentum," Boesel continued "lower-priced properties saw a slowdown in growth and had the lowest annual rent increase of any price tier in May. However, even though growth for lower-priced rentals has slowed, properties in this price range saw gains of more than 30% over the last four years."

To gain a detailed view of single-family rental prices across different market segments, CoreLogic examines four tiers of rental prices and two property-type tiers. National single-family rent growth across those tiers, and the year-over-year changes, were as follows:

• Lower-priced (75% or less than the regional median): up 1.2%, down from 5.3% in May 2023
• Lower-middle priced (75% to 100% of the regional median): up 3.4%, down from 3.8% in May 2023
• Higher-middle priced (100% to 125% of the regional median): up 3.3%, up from 3.1% inMay 2023
• Higher-priced (125% or more than the regional median): up 3.3%, up from 1.6% inMay 2023
• Attached versus detached:Attached single-family rental prices rose by 2.8% year over year in May, compared with the 3.6% increase for detached rentals.

Of the 20 metros shown in Table 1, St. Louis posted the highest year-over-year increase in single-family rents in May 2024, at 6.2%. New York and Seattle registered the second-highest annual gains (both at 5.9%), followed by San Francisco at 5.2%. Austin, Texas (-0.6%) and Phoenix (-0.3%) posted annual rental price losses.

The next CoreLogic Single-Family Rent Index will be released on August 22, 2024, featuring data for June 2024. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.

Methodology

The single-family rental market accounts for half of the rental housing stock, yet unlike the multifamily market, which has many different sources of rent data, there are minimal quality adjusted single-family rent transaction data. The CoreLogic Single-Family Rent Index (SFRI) serves to fill that void by applying a repeat pairing methodology to single-family rental listing data in the Multiple Listing Service. The rental listings used to calculate the index include both attached and detached single-family homes, as well as condominiums. CoreLogic constructed the SFRI for close to 100 metropolitan areas - including 43 metros with four value tiers - and a national composite index. The indices are fully revised with each release to signal turning points sooner.

The CoreLogic Single-Family Rent Index analyzes data across four price tiers: Lower-priced, which represent rentals with prices 75% or below the regional median; lower-middle, 75% to 100% of the regional median; higher-middle, 100%-125% of the regional median; and higher-priced, 125% or more above the regional median.

Median rent price data is produced monthly by CoreLogic Rental Trends. Rental Trends is built on a database of more than 11 million rental properties (over 75% of all U.S. individual owned rental properties) and covers all 50 states and 17,500 ZIP codes.

Source: CoreLogic

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