A new report from CoreLogic is the latest to confirm that rent growth is falling back toward historical levels as the market moves on from unprecedented growth during COVID-19
Rent for single-family homes was 3.3 percent higher in June compared with a year earlier, according to a new report from property data provider CoreLogic.
That was the slowest rate of growth since the fall of 2020, shortly after COVID-19 shocked the rental and for-sale housing markets. But it’s also a return to normal rates of growth as rent spiked during the pandemic at unprecedented levels.
Monthly rent growth was 1.1 percent in June, virtually unchanged compared to the pre-pandemic average of 1 percent, CoreLogic said. In an ongoing sign of good news for slowing inflation, rent growth slowed for the 14th consecutive month, CoreLogic reported.
The firm tracks rent changes in both detached single-family homes and attached homes, such as townhomes. Rent growth was higher in attached properties (4 percent growth) than detached homes (2.6 percent growth), CoreLogic said.
“Annual single-family rent growth has returned to its long-term, pre-pandemic rate,” said CoreLogic Principal Economist Molly Boesel. “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,” Boesel added.
CoreLogic expects single-family attached rent growth to exceed detached properties moving forward.
The rent growth slowdown has been consistent among low- through high-priced properties, according to the report, though there are signs that demand for lower-cost rentals is putting upward pressure on rent.
Homes that cost 75 percent of the regional median price were up 4.9 percent in June, CoreLogic said. Rent for homes that cost 125 percent or more of the median was up 2.3 percent.
All price levels were down significantly compared to a year ago when rent grew around 14 percent year over year, several times the historical average. Chicago has the largest year-over-year rent growth.
Miami experienced the sharpest year-over-year slowdown. Between June 2021 and 2022, rent grew at more than 30 percent in Miami. Between June 2022 to June 2023, it grew at just 0.3 percent, according to the report.
Single-family rent is actually 1.2 percent lower in Las Vegas than it was a year ago.
Highest single-family rent growth in June 2023
- Chicago: 6.6 percent
- Boston: 5.9 percent
- Orlando: 5.5 percent
Lowest single-family rent growth in June 2023
- Las Vegas: –1.2 percent
- Austin: 0.1 percent
- Miami: 0.3 percent