CoreLogic: Rent Growth Continues to Slow

U.S. Single-Family Rent Prices Increased 1.7 Percent Year Over Year in October 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. The report highlights the slowing growth in key rental metros which all experienced population spikes during the pandemic.  

Annual U.S. rent growth registered a 1.7% increase in October, down from the 2.3% growth rate seen at the same time last year and marking the lowest rate since June 2020. Prior to 2020, single-family rent growth increased in the range of 2% to 4% for nearly a decade and averaged 3.5%. 

The monthly growth rate for October was -1.5%, which was below the average -0.5% for October from 2004 through 2019. This marks the third consecutive month of below-trend seasonal growth, a clear sign that rent growth is decelerating. 

“Single-family rents posted below-trend growth in October, both in annual and monthly rate increases. While national growth was below-trend, some markets, particularly markets that have had tepid rent increases over the past two years, led rent increases for the nation,” said CoreLogic senior principal economist Molly Boesel. “Markets in the South and West, many of which had red-hot rent growth since 2022 brought down average rent growth.” 

Of the largest 20 metros shown in this report, Detroit posted the highest year-over-year increase in single-family rents in October 2024, at 6%, followed by Washington, D.C. (4.5%). Four metros showed decreases in annual growth in October, with Austin posting the lowest at -3%, followed by Phoenix (-1.2%), Orlando (-1.1%), and Dallas (-1%). Rents in Austin have been falling since mid-2023, though the decreases have not wiped out the growth since 2020. Austin’s increase in rents since Feb 2020 was 22%. 

High-end rent prices increased 2.4% since October 2023, up from last year’s 1.8% growth. Low-end rent prices increased 2.0% in October, a slowdown from the 3.0% seen at the same time last year.  

The next CoreLogic Single-Family Rent Index is scheduled to be released on January 23, 2025, featuring data for November 2024. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog.

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.

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. 

CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries.

Contact:

Robin Wachner – Media Contact – newsmedia@corelogic.com

Source: CoreLogic, Inc.