Rent growth slowed for the fourth month in a row, according to the latest CoreLogic Single-Family Rent Index.
- U.S. single-family home rental costs posted an 11.4% year-over-year increase in August, this is down from the 12.6% reported in July.
- Year-over-year appreciation peaked in April at 14.0%
Lower Is Higher. Lower-priced tiers are still seeing the most appreciation at 12.9% in August, up from 7.4% in August 2021 while lower-middle and higher-middle are at 12.8% and 12.3%, respectively.
- Amazingly the higher-priced tier is actually reporting slower growth this year than last. Prices are currently up 10.1% while August 2021 has year-over-year appreciation slightly higher at 10.7%.
All Under 30. For the first time since November 2021, not a single city reported year-over-year price gains of over 30%. Not even Miami which reported a 5.6% percentage point drop to 25.0% in August. Orlando took the number two spot at 20.8% followed by Atlanta (+11.7%) and San Diego (+11.6%).
Analysis. Molly Boesel, principal economist at CoreLogic, said that rents will continue to slow but will remain elevated. “Single-family rent prices in August were 26% higher than before the onset of the pandemic, adding an average of $400 per month to tenants’ monthly costs and compounding other household expenses caused by inflation…While annual rent growth is projected to continue increasing throughout the rest of 2022, those gains will likely moderate further in 2023.”