National rent increases drastically slowed in May, according to CoreLogic’s recently released Single-Family Rent Index (SFRI), which analyzes single-family rent price changes across 20 U.S. metros.
On a national level, rents increased 1.7 percent year-over-year in May, down from a 2.9 percent YoY increase in May 2019. While rent growth stabilized in early 2020, pre-COVID, that growth slowed dramatically in May, dropping to its lowest level since July 2010. To compare, two months into the Great Recession in February 2008, annual rent price growth was 1.8 percent, and did not decline until October 2008.
Here’s the breakdown by rental price tiers:
– Lower-priced (75 percent or less than the regional median): 2.8 percent, down from 3.5 percent in May 2019
– Lower-middle priced (75 to 100 percent of the regional median): 1.9 percent, down from 3.1 percent in May 2019
– Higher-middle priced (100 to 125 percent of the regional median): 1.6 percent, down from 2.8 percent in May 2019
– Higher priced (125 percent or more than the regional median): 1.3 percent, down from 2.5 percent in May 2019
On a regional level:
– Phoenix had the highest YoY increase in single-family rents in May at 6 percent
– Tucson, Ariz., came in second at 3.5 percent, followed by Charlotte, N.C., at 2.9 percent
– Honolulu was the only metro to post an annual decline in rent prices, dropping 0.4 percent
“Single-family rent growth slowed abruptly in May as the nation felt the full impact of the economic crisis caused by the pandemic,” says Molly Boesel, principal economist at CoreLogic. “Some metro areas, especially those that depend on tourism, were hit hardest by job losses. With unemployment rates predicted to remain high through the end of the year, we can expect to see further easing in rent growth as the economy struggles this year.”
For more information, please visit www.corelogic.com.