Residential Real Estate News
Single Family Rent Price Growth Triples Over Last Year in U.S.
Miami had the highest annual residential rent spike in the nation in October
Based on CoreLogic's latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and across major metropolitan areas, shows a national rent increase of 10.9% year over year, up from a 3.2% year-over-year increase in October 2020.
Rent prices continued their strong upward movement into the fourth quarter of the year as vacancy rates remained near 25-year lows. Tight inventory in the for-sale market has also displaced many potential buyers and forced more demand into single-family rentals as their next best option.
"Single-family rent growth hit its sixth consecutive record high in October 2021, mirroring record price increases in the for-sale housing market," said Molly Boesel, principal economist at CoreLogic. "Rent growth in October 2020 had already recovered from pre-pandemic lows and rent growth this October was more than three times that of a year earlier."
Among the top 20 U.S. metros, Miami had the highest year-over-year increase in single-family rents in October 2021 at 29.7%, followed by Phoenix and Las Vegas at 19.3% and 16.5%, respectively. These major metros have continued to experience rapid growth as tourism returns and local labor markets improve. While Chicago logged the lowest annual rent price growth at 4.2% in October, this is still more than double its pre-pandemic growth rate.
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:
- Lower-priced (75% or less than the regional median): 9.5%, up from 2.8% in October 2020
- Lower-middle priced (75% to 100% of the regional median): 10.1%, up from 2.8% in October 2020
- Higher-middle priced (100% to 125% of the regional median): 11.3%, up from 3% in October 2020
- Higher-priced (125% or more than the regional median): 11.4%, up from 3.5% in October 2020
