Rent-price growth slowed for the sixth straight month on an annual basis in October to 8.8%, the lowest rate of appreciation in more than a year but still three times higher than the pre-pandemic level, according to a new report from CoreLogic.
CoreLogic’s latest Single-Family Rent Index found that 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%, according to the report, but gains there have slowed dramatically since the spring when they hit 40.8%. 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%.
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): 11%, up from 9.7% in October 2021
- Lower-middle priced (75% to 100% of the regional median): 9.9%, down from 10.3% in October 2021
- Higher-middle priced (100% to 125% of the regional median): 8.8%, down from 11.4% in October 2021
- Higher-priced (125% or more than the regional median): 7.5%, down from 11.4% in October 2021
“Single-family rents decreased again on a monthly basis in October 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.”
“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,” said the author of the report. “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.”
For the full report, click here.