Following three consecutive months of upward momentum, numbers for rental demand plunged in March—applications decreased by 44 percent. Prices could be next; CoreLogic data reports that March rents increased only 3 percent YoY, staying relatively flat.
Properties in the lower-priced tiers are weathering the storm more so than other price points, with low-end rent prices increasing 3.9 percent YoY in March. High-priced rentals, defined as anything greater than 125 percent of a region’s median rent, increased 2.7 percent.
“Single-family rent increases eased in March, dipping to a 3 percent annual gain. However, COVID-19 has had varied effects across price tiers,” said Molly Boesel, principal economist at CoreLogic. “Lower-priced rentals experienced a slight uptick in March as renters pursued more affordable rental options. Employment gains turned negative in four of the 20 metropolitan areas analyzed in the CoreLogic SFRI, a trend we can soon expect to see across the nation, which should have an impact on single-family rent prices.”
Here’s the rent changes by geographic area:
– Phonics-Mesa-Scottsdale, Ariz. – 6.8 percent
– Seattle-Bellevue-Everett, Wash. – 6.2 percent
– Tucson, Ariz. – 5.3 percent
– Las Vegas-Henderson-Paradise, Nev. – 4.0 percent
– Boston, Mass. – 3.8 percent
– Austin-Round Rock, Texas – 3.8 percent
– Charlotte-Concord-Gastonia, N.C.-S.C. – 3.5 percent
– Los Angeles-Long Beach-Glendale, Calif. – 3.3 percent
– San Diego-Carlsbad, Calif. – 3.0 percent
– Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V. – 2.7 percent
– Orlando-Kissimmee-Sanford, Fla. – 2.7 percent
– Dallas-Plano-Irving, Texas – 2.5 percent
– Houston-The Woodlands-Sugar Land, Texas – 2.4 percent
– Miami-Miami Beach-Kendall, Fla. – 2.3 percent
The most resilient rental markets? Metro areas with limited new construction, low rental vacancies and stronger local economies that attract new employees, according to CoreLogic.
CoreLogic predicts that rent prices will continue cooling, dropping down as a result of an April peak in unemployment filings.
For more information, please visit www.corelogic.com.