Single-family rentals remain a hot commodity. Rent prices continued their double-digit climb in February, rising 13.1% overall compared to a year earlier. It marked another record for single-family rents, according to CoreLogic’s Single-Family Rental Index.
A shortage of available rentals is leading to a run-up in prices. Also, double-digit gains in home prices are pricing out some would-be home buyers and prompting them to rent instead.
“Single-family rents rose at more than three times the rate from a year earlier and more than four times the pre-pandemic rate,” says Molly Boesel, principal economist at CoreLogic. “Strong employment and low supply have pushed single-family rental vacancy rates to low levels and have contributed to the high growth in rents.”
More Americans are flocking to warmer climates, and a rush for single-family rents in these regions continues, which is pumping up prices. Single-family rent growth is 13 times its 2021 rate in warmer regions of the U.S., a new CoreLogic index shows.
For example, rents in Miami are up nearly 40% compared to February 2021. Orlando and Phoenix posted the next highest increases at 22.2% and 18.9%, respectively.