Property owners of single-family rentals continue to see climbing profits. U.S. single-family rents rose 3% year-over-year in November 2019, according to CoreLogic’s Single-Family Rent Index, released this week. The index measures rent changes among single-family rental homes, including condos.
Since 2010, single-family rents have been increasing, stabilizing at around 3% since early 2019, CoreLogic reports.
Rents for lower-priced homes are increasing faster than those on the higher end of the market. Low-end rentals are defined as properties that have rents priced at 75% or less of the region’s median rent. Rents for lower-priced single-family rental homes rose 3.6% annually, while rents for higher-priced homes increased 2.7%.
Single-family rent growth shows the largest upticks in the western regions of the United States. Phoenix saw the highest annual rent growth in November, jumping 6.9%, followed by Tucson, Ariz. (a 5.7% increase), and Seattle (a 5.4% increase). “Strong rent growth in the Southwest reflects strong population growth in this part of the country,” researchers note. “Arizona ranked third for population growth in 2019 by both number and percentage increase.”
On the other hand, Miami had the lowest single-family rent growth in November, increasing by just 0.7% annually.
Source: “Rent Increases Mirrored Population Growth in 2019,” CoreLogic Insights Blog (Jan. 21, 2020)
