Single-family annual rent growth continued to slow in May, ending the month at 3.4%, according to new data from CoreLogic.
CoreLogic’s Single-Family Rent Index for May found that despite the past year’s continuously slowing rent growth, the overall rate of increase is roughly back to its pre-pandemic norm recorded between 2010 and 2019.
The report examines four tiers of rental prices to gain a detailed view of single-family rents. The 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): up 5.6%, down from 14.4% in May 2022
- Lower-middle priced (75% to 100% of the regional median): up 4.3%, down from 14.8% in May 2022
- Higher-middle priced (100% to 125% of the regional median): up 3.7%, down from 14.9% in May 2022
- Higher-priced (125% or more than the regional median): up 2.1%, down from 13% in May 2022
- Attached versus detached: Attached single-family rental prices grew by 4.2% year-over-year in May compared with the 2.5% increase for detached rentals
Major takeaway:
Of the 20 metros the report tracks, Chicago posted the highest year-over-year increase in single-family rents at 6.6%. Charlotte, North Carolina, registered the second-highest annual gain at 5.9%, followed by Boston and New York (both 5.7%). Las Vegas saw an annual rent price decline of -1.3%.
“After increasing at an accelerated pace for more than two years, annual single-family rent growth returned to the pre-pandemic rate in May,” said Molly Boesel, principal economist for CoreLogic. “High inflation may be affecting renters’ abilities to absorb continually higher monthly payments, which could be keeping year-over-year rent increases relatively low. However, even in the current economic environment, monthly single-family rent increases returned to a typical seasonal pattern in February of this year, suggesting that single-family rents are poised to continue increasing throughout 2023.”
For the full report, click here.
