- U.S. single-family rent growth increased by 2.7% year over year in November, in line with numbers recorded since the summer of 2023.
- Attached rents grew by 3.3% and detached single-family rental costs grew by 2.3% on an annual basis.
- Among major U.S. metro areas, San Diego posted the nation’s largest year-over-year rent gain in November, while both Austin, Texas and Miami again saw annual declines.
- Appreciation in the lower-priced rental tiers continued to lead the nation, at 2.9%.
IRVINE, Calif., January 16, 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.
National single-family rent growth remained stable in November at 2.7%, slower than the double-digit gains seen in recent years but generally in line with the annual rate recorded before the pandemic. As in the past few months, rental demand is picking up in pricier coastal areas of the U.S., with the Boston, New York, San Diego and San Francisco metros all ranking in the top five for annual gains in November.
“More than three years of increasing U.S. single-family rents and the rising costs of other goods have made many renters sensitive to the cost of living,” said Molly Boesel, principal economist for CoreLogic. “Many renters are renewing their current leases, and others who are moving are seeking lower-priced alternatives.”
“For example,” Boesel continued, “rents in Austin, Texas climbed by nearly 30% from early 2020 to mid-2023 but have now posted five consecutive months of annual declines. An uptick in newly constructed, multifamily rental properties is contributing to the decrease in single-family prices in Austin, as tenants now have more options.”
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 2.9%, down from 10.1% in November 2022
- Lower-middle priced (75% to 100% of the regional median): up 2.9%, down from 8.2% in November 2022
- Higher-middle priced (100% to 125% of the regional median): up 2.7%, down from 7.4% inNovember 2022
- Higher-priced (125% or more than the regional median): up 2.1%, down from 6.3% in November 2022
- Attached versus detached:Attached single-family rental prices grew by 3.3% year over year in November, compared with the 2.3% increase for detached rentals.
Of the 20 metros shown in Table 1, San Diego posted the highest year-over-year increase in single-family rents in November 2023, at 5.6%. Minneapolis registered the second-highest annual gain at 5.2%, followed by Boston at 5.1%. Austin, Texas (-2.5%) and Miami (-1.1%) posted annual losses.
The next CoreLogic Single-Family Rent Index will be released on February 20, 2024, featuring data for December 2023. 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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Media Contact
Robin Wachner
CoreLogic
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