CoreLogic has released its latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and across major metropolitan areas. September 2021 data shows a national rent increase of 10.2% year over year, up from a 2.6% year-over-year increase in September 2020.
Consumers continue to feel the push and pull between the purchase and rental markets. While desire for home ownership remains high — with 93% of consumers agreeing that owning a home is a sound financial investment according to a recent
CoreLogic survey — the competitive purchase market conditions are creating a large wave of demand for single-family rentals that offer more financial flexibility. As the single-family rental market faces similar supply challenges as the for-sale market, we can expect a continued increase in rents, especially across high-end rentals as renters seek more space.
“Single-family rental vacancy rates remained near 25-year lows in the third quarter of 2021, pushing annual rent growth to double digits in September,” said Molly Boesel, principal economist at CoreLogic. “Rent growth should continue to be robust in the near term, especially as the labor market improves and the demand for larger homes continues.”
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): 8.3%, up from 2.4% in September 2020
- Lower-middle priced (75% to 100% of the regional median): 9.3%, up from 2.3% in September 2020
- Higher-middle priced (100% to 125% of the regional median): 10.5%, up from 2.4% in September 2020
- Higher-priced (125% or more than the regional median): 11%, up from 2.8% in September 2020
For more information, please visit www.corelogic.com.
