Annual single-family rents rose for the second straight month to close out 2023, according to CoreLogic’s Single-Family Rent Index.
- U.S. single-family rental prices grew by 2.8% year over year in December, up from 2.7% in November and the second straight increase.
Lower-Priced Not The Highest. For the first time since the pandemic recovery the lower-priced tier did not see the biggest year-over-year gain. Instead, the higher-middle priced tier saw the biggest year-over-year increase at 3.3% in December.
- The lower-middle priced tier took the number two spot with 3.2% growth followed by te lower-priced tier (+3.1%) and the higher-priced tier (+2.6%).
Cali On Top. San Francisco took the top spot in December with rent growth at 6.2% year-over-year, up from the 5.6% San Diego reported in November and the third straight month a California metro had the top spot.
- Tucson took the number two spot with rent growth up 5.5% in December followed by Honolulu (+4.8%), New York (+4.8%), and Boston (+4.7%).
Analysis. Molly Boesel, principal economist for CoreLogic, noted that single-family rent growth is likely done falling and will stay within the current parameters going forward. “Strong rent growth in the summer propelled the annual gain, while monthly increases in the fourth quarter showed rents falling slightly more than is typical for the season. Single-family rent growth should remain in the range of about 2% to 4% for 2024.”