CoreLogic has issued its most recent Single-Family Rent Index (SFRI), which examines single-family rent pricing movements across the country and in major metropolitan areas.
In March, annual single-family rent gains increased to 3.4%, with the typical monthly cost for a three-bedroom home in the United States at $2,052 in February. Only six of the 20 metropolitan regions tracked by CoreLogic had rental prices lower than the national average. Three Southern metros experienced annual reductions, but coastal job hubs continued to lead in rent growth. This suggests that Americans who rent in expensive metropolitan areas can bear the added cost burden, given to higher incomes in many job sectors and a U.S. unemployment rate that has held around 4% for more than two years.
“U.S. single-family rent growth strengthened overall in March, though some weaknesses are revealed in the latest numbers,” said Molly Boesel, Principal Economist for CoreLogic. “Overbuilt areas, such as Austin, Texas continued to soften, decreasing by 3.5% annually in March. And for the first time in 14 years, single-family, attached properties posted a year-over-year decline. The continued strength in single-family detached rents indicates that potential homebuyers who are priced out of the home-purchase market are choosing to rent similar alternatives.”
National single-family rent growth across those tiers, and the year-over-year changes, were as follows:
- Lower-priced (75% or less than the regional median): up 2%, down from 6.7% in March 2023
- Lower-middle priced (75% to 100% of the regional median): up 3.4%, down from 5% in March 2023
- Higher-middle priced (100% to 125% of the regional median): up 3.2%, down from 3.8% inMarch 2023
- Higher-priced (125% or more than the regional median): up 2.9%, a slight increase from the 2.6% recorded in March 2023
- Attached versus detached:Attached single-family rental prices declined by -0.6% year over year in March, compared with the 3.4% increase for detached rentals.
Seattle posted the highest year-over-year increase in single-family rents in March 2024, at 6.3%. New York registered the second-highest annual gain at 5.3%, followed by Boston at 5.2%. Austin, Texas (-3.5%), Miami (-3.2%) and New Orleans (-1.4%) posted annual rental price losses.
The next CoreLogic Single-Family Rent Index will be released on June 18, 2024, featuring data for April 2024. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.
