Residential Real Estate News
U.S. Single-Family Rents Climb for Third Straight Month
Led by High-End Properties and Post-Wildfire LA Surge
U.S. single-family rent prices rose for the third consecutive month in March, according to Cotality's latest Single-Family Rent Index (SFRI). Rents increased 2.9% year over year -- slightly higher than the 2.8% annual growth reported in March 2024 -- signaling a modest but steady acceleration in the rental market.
"Single-family rent growth picked up for the third consecutive month in March, appearing to have bottomed out in December of last year," said Molly Boesel, senior principal economist at Cotality. "National trends are firming. Markets with large numbers of new rental units coming online showed softness in single-family rents, as these new units give renters some bargaining power."
Dallas, for instance, experienced a -0.5% annual decline in single-family rents in March, marking the lowest growth among major U.S. metros. Analysts point to a supply-driven dynamic, with more new rental properties giving tenants greater negotiating leverage.
High-end rental properties led the overall growth, with rents increasing 3.5% annually -- up from a 2.9% rise a year earlier. In contrast, lower-end properties saw more modest gains, with rents rising just 2.1% in March, down from 2.7% in March 2024.
Detached and attached single-family rentals saw equal growth at 2.8% year over year.
Among major markets, Los Angeles posted the highest annual rent increase at 6.8%, a spike attributed in part to housing shortages following January's destructive wildfires. Washington, D.C. followed closely at 6%, while Miami remained on the low end of the spectrum with just 1.5% growth.
The latest data suggests a cautiously strengthening rental market nationally, with local variations largely driven by supply shifts and post-disaster housing dynamics.
