Single-Family Rent Growth in U.S. Hits 3-Year Low: Insights from CoreLogic

Discover the latest insights from CoreLogic's Single-Family Rent Index (SFRI) as rental prices in the United States hit a 3-year low of 3.1% YoY. Explore the shifting rental trends, with affordable areas like St. Louis and Chicago outperforming the national average.

According to the latest Single-Family Rent Index (SFRI) by CoreLogic, the growth of rental prices in the United States continued to slow down in July, with a year-over-year decrease to 3.1%. However, this figure is still in line with the historical average recorded prior to 2020. Interestingly, more affordable areas of the country like St. Louis and Chicago are becoming popular among renters, as they have shown annual growth that surpasses the national average. On the other hand, some Sun Belt markets that experienced high rental gains in the past year now find themselves near the bottom of the appreciation list.

To gain a comprehensive view of single-family rental prices across various market segments, CoreLogic assesses four tiers of rental prices and two property-type tiers. Here are the national single-family rent growth rates across these tiers, along with the year-over-year changes:

- Lower-priced (75% or less than the regional median): up 4.6%, a decrease from 13.8% in July 2022.

- Lower-middle priced (75% to 100% of the regional median): up 3.7%, down from 13.6% in July 2022.

- Higher-middle priced (100% to 125% of the regional median): up 2.9%, down from 13.3% in July 2022.

- Higher-priced (125% or more than the regional median): up 2.3%, down from 11.1% in July 2022.

When comparing attached versus detached properties, the data reveals that attached single-family rental prices experienced a growth of 3.8% year over year in July, while detached rentals only saw a 2.4% increase.

Among the 20 metros analyzed, St. Louis demonstrated the highest year-over-year increase in single-family rents in July 2023, reaching 7.3%. Chicago closely followed with a gain of 6.3%, trailed by Boston and San Diego, both with a 5.7% increase. On the other end of the spectrum, Las Vegas (-1%), Miami (-0.6%), and Austin, Texas (-0.5%) experienced slight decreases in rental costs compared to the previous year.

In conclusion, the national rental market in the United States has experienced a slight deceleration in growth, with the year-over-year rental price increase declining to 3.1% in July. However, more affordable locations like St. Louis and Chicago are bucking this trend, enjoying rental growth rates that outperform the national average. Conversely, certain Sun Belt markets have witnessed a drop in rental appreciation. These insights shed light on the dynamics of the rental market, providing valuable information for both renters and investors.