February 20, 2024
(press release)
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IRVINE, Calif., February 20, 2024—CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and across major metropolitan areas. Annual single-family rent growth remained in line with pre-pandemic trends in December. San Francisco posted the largest year-over-year gain at 6.2%. Despite that metro area’s recent high-profile tech company layoffs and steep rental costs (a median of about $4,900 per month in November), growth trends continue to indicate that at least some renters are slowly migrating back to more expensive coastal metro 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.” To gain a detailed view of single-family rental prices across different market segments, CoreLogic examines four tiers of rental prices and two property-type tiers. National single-family rent growth across those tiers, and the year-over-year changes, were as follows: Of the 20 metros shown in Table 1, San Francisco posted the highest year-over-year increase in single-family rents in December 2023, at 6.2%. Tucson, Arizona registered the second-highest annual gain at 5.5%, followed by Honolulu and New York, both at 4.8%. Austin, Texas (-2.2%) and Miami (-1.2%) again posted annual losses. The next CoreLogic Single-Family Rent Index will be released on March 19, 2024, featuring data for January 2024. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence. Methodology The single-family rental market accounts for half of the rental housing stock, yet unlike the multifamily market, which has many different sources of rent data, there are minimal quality adjusted single-family rent transaction data. The CoreLogic Single-Family Rent Index (SFRI) serves to fill that void by applying a repeat pairing methodology to single-family rental listing data in the Multiple Listing Service. The rental listings used to calculate the index include both attached and detached single-family homes, as well as condominiums. CoreLogic constructed the SFRI for close to 100 metropolitan areas — including 43 metros with four value tiers — and a national composite index. The indices are fully revised with each release to signal turning points sooner. 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; and higher-priced, 125% or more above the regional median. Median rent price data is produced monthly by CoreLogic Rental Trends. Rental Trends is built on a database of more than 11 million rental properties (over 75% of all U.S. individual owned rental properties) and covers all 50 states and 17,500 ZIP codes. Source: CoreLogic The data provided is for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data contact Robin Wachner at newsmedia@corelogic.com. For sales inquiries, please visit https://www.corelogic.com/support/sales-contact/. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources. About CoreLogic CoreLogic is a leading provider of property insights and innovative solutions, working to transform the property industry by putting people first. Using its network, scale, connectivity and technology, CoreLogic delivers faster, smarter, more human-centered experiences that build better relationships, strengthen businesses and ultimately create a more resilient society. For more information, please visit www.corelogic.com. CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries.
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