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Rent for single-family homes surged 10% in September

Kent Weakley | Getty Images

Rents for single-family homes elevated 10.2% nationally in September year over year, up from a 2.6% rise in September of final year, in line with a brand new report from CoreLogic.

Improved job development and sky-high costs in the for-sale housing market added to already sturdy demand for single-family leases fueled by the coronavirus pandemic.

While 93% of shoppers mentioned they imagine proudly owning a house is an effective funding, in line with a separate CoreLogic report, competitors in the shopping for market is forcing extra potential patrons to stay renters.

The single-family market is especially scorching proper now, as individuals need more room and because the enormous millennial era ages into marriage and parenthood.

“Single-family rental vacancy rates remained near 25-year lows in the third quarter of 2021, pushing annual rent growth to double digits in September,” mentioned Molly Boesel, principal economist at CoreLogic. “Rent growth should continue to be robust in the near term, especially as the labor market improves and the demand for larger homes continues.”

Rent development is powerful in each worth tier, however strongest on the very prime:

  • Lower-priced (75% or lower than the regional median): 8.3%, up from 2.4% in September 2020
  • Lower-middle priced (75% to 100% of the regional median): 9.3%, up from 2.3% in September 2020
  • Higher-middle priced (100% to 125% of the regional median): 10.5%, up from 2.4% in September 2020
  • Higher-priced (125% or greater than the regional median): 11%, up from 2.8% in September 2020

Some markets are hotter than others.  Rent development was strongest in Miami, with a surprising 25.7% year-over-year acquire. Miami additionally has one of many highest median rents in the nation.

Miami was adopted by Phoenix and Las Vegas at 19.8% and 15.9%, respectively. Those three markets are seeing extra development as tourism lastly begins to return following pandemic restrictions. Austin, Texas, and San Diego rounded out the highest 5 markets for lease development.

On the underside, Chicago, Boston, Philadelphia, Washington D.C., and the New York City metropolitan space are seeing the bottom lease development of below 5% from a year in the past.