Year-over-year rent growth dropped to the lowest level June 2021, but remained 3 times higher than the historical average before the onset of COVID-19, according to data Tuesday by CoreLogic
Single-family rent slowed for the sixth-consecutive month in October but remained 8.8 percent higher than where it was the year before, according to a new report from a leading data firm tracking rent prices.
The year-over-year growth was the lowest increase since June 2021, but still three times higher than the historical average before the onset of COVID-19, according to CoreLogic.
“Single-family rents decreased again on a monthly basis in October but were still up year over year,” said Molly Boesel, principal economist at CoreLogic. “While rents typically experience a seasonal decline in October, this year’s decrease was larger than average and could point to prices slowing more sharply than expected in the coming months.”
CoreLogic releases a monthly index tracking changes in single-family rent month to month.
Multiple reports on both single-family and apartment rent have been showing a consistent slowdown in rent in recent months, including some markets that are now reporting year-over-year declines.
Nationally, rent remains higher than it was a year ago after a rapid acceleration after the onset of the pandemic.
Rent growth remains highest in Miami, where it was 16.3 percent higher than a year ago. That’s still down from when it grew by 40.8 percent in the spring, CoreLogic reported. Florida was just behind, at 15.5 percent growth year over year. Boston was third, at 12.1 percent.
Lower priced rentals — those that rent for 75 percent or less than the region’s median price of rent — are weathering the slowdown the best of any asset class in October, CoreLogic reported.
- Lower-priced (75 percent or less than the regional median): 11 percent, up from 9.7 percent in October 2021
- Lower-middle priced (75% to 100% of the regional median): 9.9 percent, down from 10.3 percent in October 2021
- Higher-middle priced (100% to 125% of the regional median): 8.8 percent, down from 11.4 percent in October 2021
- Higher-priced (125% or more than the regional median): 7.5 percent, down from 11.4 percent in October 2021
Source: inman.com
