After months of accelerated growth, the cost of U.S. rents has started to tap on the brakes, according to a new report released by CoreLogic©.
In its latest Single-Family Rent Index (SFRI), the organization found that single-family rent prices climbed 13.4% year-over-year in June, marking a slowdown in growth compared to earlier this year.
The report suggests that the deceleration could be partially due to worries over an impending economic slowdown despite further improvements in the labor market in July. As homeownership costs continue to significantly grow, experts state that many Americans are forced to keep renting.
CoreLogic’s index looks at data across four price tiers: Lower-priced (rentals with prices 75% or below the regional median), lower-middle (75% to 100% of the regional median), higher-middle (100% to 125% of the regional median) and higher-priced (125% or more above the regional median).
Miami posted the highest increase in single-family rents out of the 20 metro areas analyzed, with a 35.5% increase. That marks the 11th consecutive month it has topped the nation for growth.
Orlando, Florida, and San Diego followed, with gains at 23.3% and 15.2%, respectively. Honolulu and St. Louis posted the lowest annual rent price gains, both at 6.6%
Key highlights:
- Lower-priced: 2%, up from 5.6% in June 2021
- Lower-middle priced: 2%, up from 6.4% in June 2021
- Higher-middle priced: 14%, up from 7.1% in June 2021
- Higher-priced: 5%, up from 9.4% in June 2021
The takeaway:
“While the annual growth in single-family rents is nearly double that of a year ago and is still near a record level, price growth began decelerating in June,” said Molly Boesel, principal economist at CoreLogic. “Nationwide, both year-over-year and month-over-month growth were slower in June than they were earlier this year, and roughly half of the largest U.S. metro areas experienced a slowdown in annual growth in June.”
