Sparked by the pandemic, the surge in activity in the single-family rental market doesn’t appear to be letting up. Rents for single-family homes jumped 7.5% in June year over year, the highest recorded for at least the past 16 years, according to CoreLogic, a real estate data firm.
The desire for more space has led to an increase in demand for single-family rentals. Rising home prices are pricing out some potential buyers and prompting them to rent instead.
Annual rent growth for detached rentals was up 10.5% in June, more than double the growth of attached rentals (which was at just 4.6%), CoreLogic found.
“Ultimately, for would-be homebuyers who have either priced out of the market or unable to find a home in today’s supply-constrained market, detached rentals are overwhelming preferred—and remain in high demand,” said Molly Boesel, principal economist at CoreLogic.
The largest year-over-year increases in single-family rents were in Phoenix (up 16.5%), followed by Las Vegas at 12.9%, Tucson, Ariz., at 12.5%, and Miami at 12.4%.