July 18, 2024
(press release)
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IRVINE, Calif., July 18, 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. As U.S. housing affordability remains near an all-time low due to elevated prices and higher mortgage rates, many Americans continue to rent, which is prompting continued demand and slow but steady price increases. In May, all four cost tiers saw annual gains, with only the lowest tier below the national growth rate. Also, as the U.S. unemployment rate remains near a decade low and wages continue to rise, many tenants are able to keep up with rent increases and generally high costs, especially in expensive coastal markets, where the median monthly rent exceeds $3,000. “Single-family rent growth regained strength in May, increasing to the highest annual growth rate since April 2023,” said Molly Boesel, principal economist for CoreLogic. “Monthly rent growth also picked up in May and was above what is typically recorded in spring months.” “While the annual rent growth in higher-priced properties picked up momentum,” Boesel continued “lower-priced properties saw a slowdown in growth and had the lowest annual rent increase of any price tier in May. However, even though growth for lower-priced rentals has slowed, properties in this price range saw gains of more than 30% over the last four years.” 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, St. Louis posted the highest year-over-year increase in single-family rents in May 2024, at 6.2%. New York and Seattle registered the second-highest annual gains (both at 5.9%), followed by San Francisco at 5.2%. Austin, Texas (-0.6%) and Phoenix (-0.3%) posted annual rental price losses. The next CoreLogic Single-Family Rent Index will be released on August 22, 2024, featuring data for June 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.
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