According to the latest Single-Family Rent Index published by CoreLogic, a global property information, analytics, and data solutions provider, found that U.S. single-family rental prices grew by 2.8% year-over-year in December, a number that is in line with the preceding four months.
Annual single-family rent growth also remained in line with pre-pandemic numbers in December; San Francisco posted the largest year-over-year gain at 6.2%. Despite the high number of layoffs in the area, rental costs are still hovering around $4,900 per month. This growth trend indicates that some number of renters are slowly migrating back to more expensive coastal areas. Tucson, Arizona was the only metro in the top five for annual rent growth where the median cost was less than $3,000 per month.
“Single-family rent growth closed out 2023 in positive territory, up by 2.8% annually in December,” said Molly Boesel, Principal Economist for CoreLogic. “Strong rent growth in the summer propelled the annual gain, while monthly increases in the fourth quarter showed rents falling slightly more than is typical for the season. Single-family rent growth should remain in the range of about 2% to 4% for 2024.”
CoreLogic Chief Economist Dr. Selma Hepp added: “The recent reacceleration of the Consumer Price Index’s Owners’ Equivalent Rent of Residences (OER) index caused some concern, but since those numbers reflect single-family rents with a nine-to-12-month lag, the most recent CoreLogic SFRI data suggests that the OER will revert to a slower growth rate and return to the pre-pandemic average over the next year.”
Detailed view of single-family rental prices nationwide
By the numbers:
- Lower-priced (75% or less than the regional median): up 3.1%, down from 9.2% in December 2022
- Lower-middle priced (75% to 100% of the regional median): up 3.2%, down from 7.4% in December 2022
- Higher-middle priced (100% to 125% of the regional median): up 3.3%, down from 6.6% inDecember 2022
- Higher-priced (125% or more than the regional median): up 2.6%, down from 5.2% in December 2022
- Attached versus detached:Attached single-family rental prices grew by 3.3% year over year in December, compared with the 2.7% increase for detached rentals.4
The next CoreLogic Single-Family Rent Index will be released on March 19, 2024, featuring data for January 2024.
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