Although U.S. single-family rent growth was up by 12.6% in July year over year, the gains continue to slow from the historic high recorded in April, as found in a new report released by CoreLogic this week.
The Single-Family Rent Index (SFRI) report from CoreLogic observed that attached single-family rental price growth slightly outpaced detached price growth in July, a respective 12.6% and 11.9%, moving away from pandemic-era preferences for detached rentals. There has been similar price growth relaxation in most major metro areas.
- Popular Sun Belt cities that had seen rental costs skyrocket are slowing, such as Miami’s 30.6% annual price gain in July 2022, which is down from the 40.8% from March, and Phoenix’s 12.2% annual gain for July, but saw rental cost growth drop by 6 percentage points from March.
- Lower-priced (75% or less than the regional median) rentals are at 13.9%, up from 6.3% in July 2021.
- Lower-middle priced (75% to 100% of the regional median) rentals are at 13.6%, up from 7.5% in July 2021.
- Higher-middle priced (100% to 125% of the regional median) rentals are at 13.4%, up from 8.4% in July 2021.
- Higher-priced (125% or more than the regional median) rentals are at 11.4%, up from 10.1% in July 2021.
- The areas to see accelerated rent growth since April are Northeastern metros, such as Philadelphia, New York and Washington.
According to the report, of the 20 metro areas Miami posted the highest year-over-year increase in single-family rents in July 2022 at 30.6%, marking more than a year that it has led the U.S. for price growth. Orlando, Florida recorded the second-highest gain at 22.2%, while San Diego and Atlanta tied for third at 14%. St. Louis posted the lowest annual rent price gain at 4.4%.
“July marked the third month of slower annual gains in single-family rents,” said Molly Boesel, principal economist at CoreLogic. “However, higher interest rates this year increased monthly mortgage payments for new loans, and potential homebuyers may choose to continue renting rather than buy, helping keep price increases in check.”
To read the full report, click here.