U.S. annual single-family rent growth continued to slow year over year in January, declining for the ninth straight month to 5.7%, according to a new report from CoreLogic.
CoreLogic’s latest Single-Family Rent Index found that in January rent growth and gains in all four price tiers were still higher in January than before the pandemic. Though annual gains in all price tiers have steadily declined since last summer, the low tier has experienced stronger growth.
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): 8.5%, down from 12.1% in January 2022
- Lower-middle priced (75% to 100% of the regional median): 6.5%, down from 13.3% in January 2022
- Higher-middle priced (100% to 125% of the regional median): 5.5%, down from 13.5% in January 2022
- Higher-priced (125% or more than the regional median): 4.3%, down from 12.4% in January 2022
- Attached versus detached: Attached single-family rental prices grew by 6.2% year over year in January, compared with the 4.7% increase for detached rentals
Major takeaway:
Of the 20 metros the report tracks, CoreLogic found that Orlando, Florida posted the country’s largest annual gain for the third consecutive month at 8.9%. Charlotte, North Carolina recorded the second-highest gain at 8%, while New York and Boston ranked third, both at 7.4%. Phoenix saw the lowest annual rent price gain at 0.6%. Also, none of the 20 metro areas that CoreLogic tracks posted double-digit year-over-year rent gains, the first time that trend has been observed since late 2020.
“January’s single-family rent growth cooled to the lowest level since the spring of 2021,” said Molly Boesel, principal economist at CoreLogic. “While rent growth is slowing at all tracked price tiers, declines for the lowest-cost rentals are not as significant, which raises affordability concerns. Annual rent growth for lower-tier properties was about three times the pre-pandemic rate, while gains in the highest tier were nearly one-and-a-half times during the same period.”
For the full report, click here.
