Single-family rent price increases dropped to 7.5% year over year in November, the lowest growth recorded since May 2021, with all four tracked price tiers posting lower gains than a year earlier, according to a new report from CoreLogic.
CoreLogic’s latest Single-Family Rent Index found that November marked the seventh consecutive month of annual deceleration, and while Florida metro areas continued to post the nation’s highest rental cost gains, other Sun Belt cities such as Phoenix and Las Vegas that formerly showed the highest rent increases are now at the bottom.
The report also found that of the metro areas analyzed, Orlando, Florida posted the highest year-over-year increase in single-family rents at 13.4%. Miami recorded the second-highest gain at 12.7%, while Boston ranked third at 11.5%. Phoenix saw the lowest annual rent price gain at 2.4%.
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): 10.1%, down from 10.9% in November 2021
- Lower-middle priced (75% to 100% of the regional median): 8.2%, down from 11.9% in November 2021
- Higher-middle priced (100% to 125% of the regional median): 7.2%, down from 12.5% in November 2021
- Higher-priced (125% or more than the regional median): 6.5%, down from 12.3% in November 2021
Major takeaway:
“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,” said the author of the report. “Attached single-family rental prices grew 8% year over year in November compared to the 6.5% increase for detached rentals.”
“An increase in single-family rental inventory is cooling price growth rapidly,” said Molly Boesel, principal economist at CoreLogic. “November’s annual U.S. rent growth was the slowest since May 2021 and two of the previously hottest markets — Phoenix and Las Vegas — posted the lowest gains among major metro areas. Looking forward, rent growth should continue to moderate and better balance market conditions.”
The author of the report stated that CoreLogic expects that rental price growth, along with home price appreciation, will continue to level off during the first part of 2023.
For the full report, click here.
