CoreLogic has released its latest Single-Family Rent Index (SFRI), with insights into the month of November 2017. As CoreLogic reports, national single-family rent prices were steadily on the upswing between 2010 and 2017, but with year-over-year rent price growth rate decelerating gradually since peaking at 4.3 percent in February 2016.
The SFRI “measures changes to the cost to rent single-family rental homes, including condominiums, using a repeat-rent analysis to measure the same rental properties over time.” CoreLogic’s analysis is done on both a national basis and spotlighting 75 specific Core Based Statistical Areas (CBSAs).
In November 2017, single-family rent prices increased 2.7 percent year-over-year, which marked a 1.6 percent decline in the growth rate below the February 2016 peak. Rent prices on high-end homes, defined as properties with rent prices 125 percent or more of a region’s median rent, were up 2.3 year-over-year in November, up from a gain of 1.7 percent in November 2016. However, lower-end properties (with rents less than 75 percent of the regional median rent) increased 3.8 percent year-over-year, down from a gain of 5 percent in November 2016.
The chart below tracks rent growth across 20 select CBSAs, with Seattle-Bellevue-Everett, Washington showing the highest year-over-year rent growth at 5 percent. Only two of the selected CBSAs showed a decrease in year-over-year rent prices: Urban Honolulu, Hawaii at -1.6 percent and Miami-Miami Beach-Kendall, Florida at -0.2 percent.
Houston, Texas, showed a year-over-year rent price growth of 2.5 percent, compared with a decline of 1.5 percent in November 2016. According to CoreLogic, “While rents in Houston are showing strength due to increased demand after Hurricane Harvey, markets in Florida continue to show weakening rent growth despite Hurricane Irma.” Tampa-St. Petersburg-Clearwater, Florida showed a 1.5 percent point lower year-over-year increase in rents compared with November 2016. Rents in Miami-Miami Beach-Kendall, Florida continued to decrease in November 2017.
You can read CoreLogic’s latest Single-Family Rent Index (SFRI) by clicking here.
For more insights into the state of the single-family rental market, be sure to register for the 2018 Single-Family Rental Summit, scheduled for March 19-21 at the Renaissance Nashville Hotel in Nashville, Tennessee. The event will feature top subject matter experts and skilled SFR practitioners leading discussion panels and training sessions that will answer questions and offer viable solutions related to property acquisition and management, financing, strategies for small, mid-cap, and large investors, and new developments related to technology and professional services. You can find out all the details by clicking here.