- Single-family rents jumped +5.3% y/y in April
- Largest annual single-family rent gain in almost 15 years
Demand Skyrocketing for Single-Family Rentals
According to CoreLogic’s just released Single-Family Rent Index (SFRI), single-family rent growth rose +5.3% in April 2021. This is the fastest pace of single-family rent growth since May 2006.
Compared with CoreLogic’s SFRI in 2019 (due to the Index’s pandemic slowing in 2020), rent growth in 2021 is now ahead of pre-pandemic levels.
Also worth noting in this report, rent growth of detached properties exceeded more than three times the rent growth of attached properties.
Single-Family Rent Growth by Price Levels
All price tiers of single-family rentals came in ahead of pre-pandemic rates. This is a first for low-end rentals despite low-end rent growth lagging behind higher-tier price levels.
Prices for low-end properties increased +3.9% y/y in April while higher-priced rentals saw rent growth of +6.1% in April 2021. This +6.1% growth rate was the fastest increase in higher-priced single-family rentals since May 2006.
Detached Property Rentals Seeing Most Rent Growth
Detached properties (properties with a freestanding residential building) saw an accelerated rent growth of +7.9% y/y in April 2021.
Attached single-family units (duplexes, triplexes, quadplexes, townhouses, row-houses, condos and co-ops) saw an increase in rent growth of +2.2% y/y.
Single-Family Rental Growth in Large Metros
The y/y change in CoreLogic’s April 2021 Single-Family Rent Index points to the country’s large metros with the greatest increases and declines
Take a look:
- Phoenix – +12.2% (ahead of the pack over last 3 years)
- Tucson – +10.6%
- Las Vegas – +9.3%
Boston (-5.9%) and Chicago (-2.6%) were the only two among 20 metros that experienced decelerations in single-family rent growth in April 2021
Cause of Uptick in Single-Family Rent Growth in April 2021?
CoreLogic attributes both affordability issues and inventory shortages in for-sale housing as the two primary causes for this explosive uptick in single-family home rent growth.
The third part of this equation, according to CoreLogic, is the ongoing market pressure from aging Millennials who want to live in single-family housing, be that housing rental or for-sale properties. In other words, more demand translates into higher rent prices just as higher single-family for-sale prices.
Thanks to CoreLogic.
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