Rent Prices Show Signs of Moderating in December

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. 

Click here for current and past rental intelligence reports. 

Share this post :

Facebook
Twitter
LinkedIn
Pinterest
Kyle G. Horst

Kyle G. Horst

Kyle G. Horst is a reporter for MortgagePoint. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at kyle.horst@thefivestar.com.
Latest News
Categories

Unleash the Power of Knowledge

Stay in the know with our suite of email blasts
Receive the latest news

Gain Access to Exclusive Mortgage Knowledge!

Stay at the forefront of industry developments! By subscribing to MortgagePoint, you’re aligning yourself with the latest insights, updates and exclusive promotions in the mortgage industry. As an industry professional, it’s critical to stay informed and up-to-date. Don’t miss out – subscribe now!