According to CoreLogic’s latest Single-Family Rent Index (SFRI), single-family rental growth is returning to pre-pandemic levels as prices continue to hold steady. Although rental prices are growing slowly, they continue to rise steadily.
According to CoreLogic, single-family rental prices rose 2.9% year-over-year in June, in line with the previous month’s increases. That compares to rent increases of 2.8% from June 2022 to June 2023. Monthly increases rose 1% between May and June, roughly in line with the average year-over-year rental price increase of 0.9% between 2004 and 2019.
Of the 20 core statistical areas tracked by CoreLogic, eight saw increases of over 4%, and seven metros saw median rents over $3,000. The Washington, DC, metropolitan area was the nation’s leading area with annual rent growth at 6.5%. Seattle followed with 6.1% annual rent growth, and New York rounded out the top three with 5.4% rent growth. Phoenix and Austin, Texas, both saw annual rent declines, according to SFRI.
Rental prices for lower-end properties rose 1.9% compared to higher-end properties, where rental prices rose 3.1% year-on-year. Rental prices for terraced houses rose 2.6% year-on-year in June, while rental prices for detached rental properties rose 2.8%.
“Single-family rents have hovered around their pre-pandemic growth rate of about 3% this year after growing by double digits for most of 2021 and 2022. They slowed to the mid-2% range in late 2023,” said Molly Boesel, chief economist at CoreLogic. “While single-family rents are rising steadily, the average rent continues to rise and has increased by over $300 over the past two years.”
