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US rental price growth slows in June, CoreLogic reports

  • Although single-family rental price growth slowed nationwide and in many major metro areas, it continued to post double-digit year-over-year gains in June.
  • Preferences for rental types may be shifting as annual attached rental price growth (13.2%) slightly outpaced detached price growth (12.8%) for the first time since February 2020.

IRVINE, Calif., August 16, 2022 – CoreLogic©A leading global property information, analytics and data-enabled solutions provider, today released its latest Single-Family Rent Index (SFRI), which analyzes single-family rental price changes nationally and in major metropolitan areas.

Single-family rental prices are up 13.4% from a year ago, but continue to relax compared to growth seen earlier this year. Although the job market added 528,000 positions in July, returning the employment rate to its level before the COVID-19 outbreak, the decline may have been partly due to worries about an impending economic downturn. Still, as the cost of owning a home continues to grow significantly, many Americans are forced out of the housing market, forcing them to rent.

“While annual growth in single-family rents was nearly double a year ago and still at record levels, price growth began to slow in June,” said Molly Bossel, principal economist at CoreLogic. “Nationwide, year-over-year and month-over-month growth was slower in June than earlier this year, and roughly half of the largest US metro areas experienced a slowdown in annual growth in June.”

To get a detailed look at single-family rental prices, CoreLogic examines four levels of rental prices. National single-family rent growth and year-over-year changes in four levels are as follows:

  • Low cost (75% or below regional average): 14.2%, up from 5.6% in June 2021
  • Low-medium price (75% to 100% regional average): 14.2%, up from 6.4% in June 2021
  • High-mid price (100% to 125% regional average): 14%, up from 7.1% in June 2021
  • High priced (125% or above regional average): 12.5%, up from 9.4% in June 2021

Among the 20 metro areas shown in Table 1, Miami posted the highest year-over-year increase in single-family rents at 35.5% in June 2022, 11Th It has topped the nation in growth for consecutive months. Orlando, Florida and San Diego recorded the second and third largest gains at 23.3% and 15.2% respectively. Honolulu and St. Louis posted the lowest annual rental price gains at 6.6%.

Differences in rental growth by property type emerged after COVID-19 took hold, as renters sought independent properties in low-density areas. This trend led to an increase in rent growth for detached rentals in 2021, while gains for attached rentals were more moderate. However, in June 2022, this trend reversed, with attached rental property prices growing by 13.2% year-on-year, compared to a 12.8% increase for detached homes, making rental price growth outpacing detached rental price growth for the first time since February 2020. Still, overall rental price growth for detached homes (24.9%) and attached homes (18.8%) remained stronger on a two-year basis.

The next CoreLogic Single-Family Rent Index will be released on September 20, 2022, containing data through July 2022. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.

Figure 1: Percent Change from National SFRI YOY Price Range
Figure 2: SFRI YOY Percent Change in 20 Markets
Figure 3: Single family attached versus detached rental price growth
Table 1: SFR variation for selected geographic regions

methodology

The single-family rental market accounts for about half of the rental housing stock, but unlike the multifamily market, which has many different sources of rental data, there is minimal quality matched single-family rental transaction data. The CoreLogic Single-Family Rental Index (SFRI) works to fill that void by applying an iterative alignment method to single-family rental listing data in the Multiple Listing Service. CoreLogic constructed an SFRI for nearly 100 metropolitan areas — including 47 metros with four value ranges — and a national composite index.

The CoreLogic Single-Family Rent Index analyzes data across four price ranges: low-priced, which represents rentals with prices at or below 75% of the regional average; lower-middle, 75% to 100% of the regional middle; high-medium, regional median 100%-125%; and overpriced, 125% or more above the regional average.

Monthly average rental price data is generated by CoreLogic RentalTrends. RentalTrends is built on a database of over 11 million rental properties (more than 75% of all US privately owned rental properties) and covers all 50 states and 17,500 ZIP codes.

Source: CoreLogic

The data provided is for the primary recipient’s or primary recipient’s publication or broadcast use only. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company, without prior written permission from CoreLogic. Any CoreLogic data used for publication or dissemination must be obtained in whole or in part from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany the first reference to the data. If data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on the screen or website. For questions, analysis or interpretation of data contact Robin Wachner at [email protected] Data provided may not be modified without CoreLogic’s prior written permission. Do not use the data in any illegal manner. This data is compiled from public records, contributory databases and proprietary analytics and its accuracy is dependent on these sources.

About CoreLogic

CoreLogic is a leading global asset information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources spans 4.5 billion records spanning more than 50 years, providing information on property, mortgages and other encumbrances, consumer debt, rent, location, risk exposure and related performance. Markets served by CoreLogic include real estate and mortgage finance, insurance, capital markets and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, consulting and managed services. Customers rely on CoreLogic to help them identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, California, CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or are trademarks of its subsidiaries.

© 2022 CoreLogic,Inc., All Rights Reserved.

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