By Ted Knutson
January 19, 2022, at 06:25 AM
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CoreLogic called the hikes the fastest increases in the history of the index.
Single family rents were up 11.5% year-over-year in November, CoreLogic reported.
The increase hit a seventh consecutive record high.
“The November 2021 increase was more than three times the November 2020 increase, and while the index growth slowed in the summer of 2020, rent growth returned to its pre-pandemic rate by October 2020, CoreLogic Principal Economist Molly Boesel noted in unveiling the latest CoreLogic Single-Family Rent Index.
In price ranges, rents in the high price tier led the hikes with an 11.7% increase with the low price tier climbing 10.4%.
CoreLogic called the hikes the fastest increases in the history of the SFRI for both the low- and high-price rent tiers.
The increases have led to decreases in affordability, the report said.
CoreLogic predicted rent growth should continue to be robust in the near term, especially as the labor market continues to improve.
The survey found rent growth for attached properties slowed a bit while that of detached properties strengthened. Annual rent growth for detached rentals was 12.1% in November, compared with 10.3% for attached rentals.
The firm explained differences in rent growth by property type emerged after the pandemic as renters sought out standalone properties in lower density areas.
From a look at 20 metro areas, CoreLogic found Miami with an increase of 33%, stood out with the highest year-over-year rent growth in November, followed by Phoenix at 19.4%. Washington, DC had the lowest increase at 5.4%, and Boston (+8.1%) showed significant improvement from a year ago when rents decreased 4.4%.
In October Jeff Andrews, data journalist at Zumper, told GlobeSt.com that the rapid rent growth in the single-family rental market reflects what’s been a hyper-competitive home sales market since the beginning of the pandemic in March 2020.
“As home valuations continue to soar, more renters get priced out and stuck in the rental market, adding to demand for single-family rentals,” Andrews said. “At the same time, investors have been aggressively acquiring single-family homes for the purpose of renting them out, a trend that began with the financial crisis in 2008. This not only contributes to pushing home valuations up, but also puts single-family homes in the hands of financially savvy operators who know the rental market and will price their units accordingly.”
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