As Americans emerge from the two-year period of severe pandemics and move back to cities, single-family rentals are in high demand.

CoreLogic has released a report that shows single-family rents increased 12.6% over the previous year. This compares with a 3.9% increase in January 2021.

Each major market experienced an increase in sales, but the Sun Belt cities saw incredible growth.

One-family rents in Miami rose by 38.6%, an increase of just 2% from January. Orlando, Fla., Phoenix, and Arizona were the next to see gains of 19.9% or 18.9% as Americans continue their migration towards warmer regions of America. The Washington, D.C., area saw the lowest annual growth in rent prices — but they were still up 5.6%.

Molly Boesel principal economist at CoreLogic stated, “Single family-rent growth increased its record-breaking price rise streak to 10 consecutive monthly months in January.”

Single-family rental demand is strong because of the tough market for homebuyers. The number of homes for sale is still low, with home prices rising 19% compared to a year earlier. This means that homes listed on the market often sell within weeks or days.

The report shows that rent growth is most strong in the middle segment of the market. CoreLogic examined the four price tiers for rental properties and determined that there was the least growth at the edges.

• Lower-priced(75% or lower than the regional median),: up to 12%, compared to just 3% in Jan 2021
• Lower-middle priced75% to 100% Regional Median: 13.3% up from 3.2% in Jan 2021
• Higher-middle priced(100% to 125% Regional Median): 13.4% up from 3.6% January 20, 2121
• Higher-priced(125% or higher than the regional median): Up 12.2% from 4.5% January 2021

The rents of apartments are also rising but are slowing down as there is more supply to match the demand.

However, this isn’t true for single-family rentals. While there are more investors and builders choosing build-for rent projects, inventory remains low due to disruptions in supply chains and a shortage of labor.