Rent for single-family homes surged 10% in September
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CoreLogic’s new report shows that the national average rent for single-family homes rose 10.2% in September compared to September last year. This is an increase of 2.6% in September.
The strong rental market for single-family homes has seen an improvement in job growth as well as skyrocketing prices on the for-sale property market. This is a result of the booming economy. coronavirus pandemic.
CoreLogic reports that 93% consumers believe buying a home is an investment. But, there is more competition for buyers, which is leading to more renters.
Single-family is a hot market right now because people are looking for more space, and the huge millennial generation enters marriage and parenthood.
Molly Boesel principal economist at CoreLogic stated, “Single family rental vacancy rates remain near 25-year highs in the 3rd quarter of 2021. This pushes annual rent growth to double-digits for September.” The near-term trend for rent growth is expected to remain robust, particularly as the labor market continues to improve and there’s a continued demand for bigger homes.
Rent growth is strong at every price level, but stronger at the top.
- Lower-priced(75 % or less than regional median): 8.3% Up from 2.4% September 2020
- Lower-middle priced7.5% to 100% of regional median
- Higher-middle priced(100% to 125% Regional Median): 10.5%, an increase from 2.4% September 2020
- Higher-priced(11% or more): This is an increase of 2.8% from September 2020.
Certain markets are more hot than others. Miami had the highest rent growth with an astonishing 25.7% annual increase. Miami has the nation’s highest median rent.
Phoenix was next at 19.8%, followed by Las Vegas (at 15.9%), These three cities are experiencing more growth after the pandemic restrictions have lifted. San Diego, Texas and Austin round out the top five cities for rent growth.
Below the poverty line, New York City’s metropolitan areas of Chicago, Boston and Philadelphia are experiencing the lowest levels of rent growth, with an average rate of 5% compared to a year earlier.