Single-family rent growth slowed in May, according to CoreLogic.
The annualized increase in rent slowed to 1.7%, the smallest gain in nearly a decade, down from 2.9% a year ago, according to the CoreLogic Single-Family Rent Index.
Leading up to COVID-19, rent growth had stabilized at an annual average of 3%, according to CoreLogic data.
“Single-family rent growth slowed abruptly in May as the nation felt the full impact of the economic crisis caused by the pandemic,” said Molly Boesel, principal economist at CoreLogic.
“Some metro areas, especially those that depend on tourism, were hit hardest by job losses,” Boesel said. “With unemployment rates predicted to remain high through the end of the year, we can expect to see further easing in rent growth as the economy struggles this year.”
Phoenix had the highest year-over-year rent price increase for the 18th consecutive month, with a gain of 6%. Tucson, Arizona, had the second-highest rent price growth in May, at 3.5%.
Honolulu was the only metro to have a decline in rent prices, with a drop of 0.4%.
According to the report, low-end rental prices increased 2.8% compared to the 1.3% gain in higher-priced rentals.
Lower-priced homes, defined as having rents at 75% or lower than the regional median, saw annualized rent growth of 2.8%, down from 3.5% a year ago. Lower-middle priced units, renting at 75% to 100% of the regional median, posted an annualized gain of 1.9%, down from 3.1%.
Higher-middle priced homes that rent at 100% to 125% of the regional median had an annualized gain of 1.6%, down from 8% a year ago, and higher-priced units that rent for 125% or more than the regional median had year-over-year rent growth at 1.3%, down from 2.5%.