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Rent Growth Nearly Triples as Housing Inventory Tightens

CoreLogic has released its latest Single-Family Rent Index, which analyzes single-family rent price changes nationally and across major metropolitan areas. Single-family rent tripled from October 2021 as data showed a national rent increase of 10.9% year-over-year, up from a 3.2% year-over-year increase in October 2020. 

Rent prices continued their strong upward movement into Q4 as vacancy rates remained near 25-year lows. Tight inventory in the for-sale market has also displaced many potential buyers and forced more demand into single-family rentals as their next best option. 

“Single-family rent growth hit its sixth consecutive record high in October 2021, mirroring record price increases in the for-sale housing market,” said Molly Boesel, principal economist at CoreLogic. “Rent growth in October 2020 had already recovered from pre-pandemic lows and rent growth this October was more than three times that of a year earlier.” 

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): 9.5%, up from 2.8% in October 2020 
  • Lower-middle priced (75% to 100% of the regional median): 10.1%, up from 2.8% in October 2020 
  • Higher-middle priced (100% to 125% of the regional median): 11.3%, up from 3% in October 2020 
  • Higher-priced (125% or more than the regional median): 11.4%, up from 3.5% in October 2020 

Among the 20 metro areas shown in Table 1 (see below), Miami had the highest year-over-year increase in single-family rents in October 2021 at 29.7%, followed by Phoenix and Las Vegas at 19.3% and 16.5%, respectively. These major metros have continued to experience rapid growth as tourism returns and local labor markets improve. While Chicago logged the lowest annual rent price growth at 4.2% in October, this is still more than double its pre-pandemic growth rate. 

The CoreLogic Single-Family Rent Index analyzes data across four price tiers:  

  • Lower-priced, which represent rentals with prices 75% or below the regional median 
  • Lower-middle, 75% to 100% of the regional median 
  • Higher-middle, 100%-125% of the regional median 
  • Higher-priced, 125% or more above the regional median 

The next CoreLogic Single-Family Rent Index will be released on January 18, 2022, featuring data for November 2021. For ongoing housing trends and data, click here

About Author: Demetria Lester

Demetria C. Lester is a reporter for DS News and MReport magazines with more than eight years of writing experience. She has served as content coordinator and copy editor for the Los Angeles Daily News and the Orange County Register, in addition to 11 other Southern California publications. A former editor-in-chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington, she has covered events such as the Byron Nelson and Pac-12 Conferences, progressing into her freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Texas, Lester is an avid jazz lover and likes to read. She can be reached at [email protected].

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