U.S. single-family rents grew by 3.3% year over year in June, the lowest gain since autumn 2020, according to a new report from property data provider CoreLogic. Meanwhile, monthly rent growth was 1.1%, nearly identical to June’s pre-pandemic average of 1%.
Corelogic’s Single-Family Rent Index (SFRI) analyzes single-family rent price changes nationally and across major metropolitan areas.
“Annual single-family rent growth has returned to its long-term, pre-pandemic rate,” Molly Boesel, principal economist at CoreLogic, said in a statement. “But increases for attached properties were one-and-a-half times that of detached properties in June; this is historically not the case, as both housing types tend to rise at the same pace.”
While rent growth for attached properties trended under that of detached properties in 2020 and 2021, it has surpassed the latter in 2022 and 2023, Boesel said. For attached properties, rent growth was 4% year over year in June, while it was 2.6% for detached homes in the same period, CoreLogic shows.
“Rent growth for attached homes is projected to continue to exceed that of detached properties as the market balances,” Boesel said.
The rent growth slowdown scored consistently across all four tracked price tiers. All categories showed a 10 percentage points decrease since June 2022.
However, lower-cost rentals seem to be rising faster because of the strong demand for such housing. Properties that cost 75% of the regional median price were up 4.9% year over year in June, while rent for homes that cost 125% or more of the median was up 2.3%.
For a breakdown by region, Chicago posted the highest year-over-year increase in single-family rents in June 2023, at 6.6%. Boston came in second at 5.9%, followed by Orlando at 5.5%. Las Vegas, on the other hand, saw an annual rent price decline of -1.2%.