U.S. single-family home rental costs posted an 11.4% year-over-year increase in August, marking the fourth straight month of annual deceleration, according to the CoreLogic Single-Family Rent Index for August, released this week.
Key highlights:
- Lower-priced (75% or less than the regional median): 12.9%, up from 7.4% in August 2021
- Lower-middle priced (75% to 100% of the regional median): 12.8%, up from 8.3% in August 2021
- Higher-middle priced (100% to 125% of the regional median): 12.3%, up from 9.4% in August 2021
- Higher-priced (125% or more than the regional median): 10.1%, down from 10.7% in August 2021
- Miami posted the highest year-over-year increase in single-family rents in August 2022 at 25%, continuing its year-plus streak as the country’s hottest rental market.
- Orlando, Florida recorded the second-highest gain at 20.8%, while Atlanta ranked third at 11.7%. St. Louis posted the lowest annual rent price gain at 4.2%.
Major takeaway:
According to the report, “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. However, this trend has recently shifted, and attached rental property prices grew by 11.8% year over year in August, compared to the 10.6% increase for detached homes. However, detached rental price growth is still outpacing that of attached homes on a two-year basis, a respective 23.7% compared with 19.5%.”
“Single-family rent prices in August were 26% higher than before the onset of the pandemic, adding an average of $400 per month to tenants’ monthly costs and compounding other household expenses caused by inflation,” said Molly Boesel, principal economist at CoreLogic. “While annual rent growth is projected to continue increasing throughout the rest of 2022, those gains will likely moderate further in 2023.”
For the full report, click here.
