Miami has nation's highest residential rent price spike at 38.6 percent annually in early 2022
Based on CoreLogic's latest Single-Family Rent Index, which analyzes single-family rent price changes nationally and across major metropolitan areas, U.S. Single-family rent prices started 2022 strong. Rental prices increased 12.6% year over year in January 2022 compared to 3.9% in January 2021.
All major metropolitan areas covered in the CoreLogic SFRI release experienced year-over-year increases, with Sun Belt cities once again registering the largest gains. The robust price growth was partially due to a continuing shortage of available rental properties. Also, the cost of purchasing a home rose by 19% on an annual basis in January, shutting out many would-be homebuyers and forcing them to keep renting. The year-over-year national rent price growth more than tripled the gain recorded in January 2021 and more than quadrupled the increase from January 2020.
"Single-family rent growth extended its record-breaking price growth streak to 10 consecutive months in January," said Molly Boesel, principal economist at CoreLogic. "Rents increased across the country, and the gains were highest in the Sun Belt, which also had strong population growth last year."
To gain a detailed view of single-family rental prices, CoreLogic examines four tiers of rental prices. National single-family rent growth across the four tiers, and the year-over-year changes, were as follows:
Among the 20 metro areas reported, Miami again had the highest year-over-year increase in single-family rents in January 2022 at 38.6%, another significant bump from its January 2021 growth rate of 2.2%. Orlando and Phoenix logged the second- and third-highest gains at 19.9% and 18.9% respectively, reflecting population gains seen in warmer areas of the country. Meanwhile, the Washington, D.C. area recorded the lowest annual rent price growth, at 5.6% in January.
Differences in rent growth by property type emerged after the pandemic, as renters sought out standalone properties in lower-density areas. This trend drove an acceleration in rent growth for detached rentals in 2021 while the gains for attached rentals was more moderate. However, as rental inventory remains slim, the gap between attached and detached rental growth started to close last fall. In January of 2022, attached rental property prices grew by 12.2% year over year, compared to the 12.4% increase recorded for detached homes. This is the closest that attached and detached growth rates have been since March 2020.