Miami leads the nation with highest year-over-year increases in single-family rents
According to CoreLogic's latest Single-Family Rent Index (SFRI), U.S. rental price growth slowed for the sixth straight month on an annual basis in October 2022 to 8.8%, the lowest rate of appreciation in more than a year but still three times higher than the pre-pandemic level.
Despite the continued cooling, a shortage of available properties is keeping costs elevated, a trend that is partially fueling year-over-year gains in the lower-priced tier. Miami led the nation for rent growth for the 15th consecutive month at 16.3%, but gains there have slowed dramatically since the spring when they hit 40.8%.
"Single-family rents decreased again on a monthly basis in October 2022 but were still up year over year," said Molly Boesel, principal economist at CoreLogic. "While rents typically experience a seasonal decline in October, this year's decrease was larger than average and could point to prices slowing more sharply than expected in the coming months."
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:
Of the 20 U.S. metro areas covered, Miami posted the highest year-over-year increase in single-family rents in October 2022, at 16.3%. Orlando, Florida recorded the second-highest gain at 15.5%, while Boston ranked third at 12.1%. Honolulu saw the lowest annual rent price gain at 4.8%.
Differences in rent growth by property type emerged after COVID-19 took hold, as renters sought standalone properties in lower-density areas. This trend drove an uptick in rent growth for detached rentals in 2021, while the gains for attached rentals were more moderate. As single-family rent prices continued growing rapidly, preferences for attached rentals began to emerge in early 2022, and by summer, they had higher increases than detached properties. Attached single-family rental prices grew 9.5% year over year in October compared to the 7.6% increase for detached rentals.