Rents for single-family homes in the United States rose 12% year over year in December

  • Annual rental growth has reached record highs for all price levels.
  • Rental growth in Miami was up 35.7% year over year.

Overall single-family rent growth

Rent growth for single-family homes in the United States rose 12% in December 2021, the fastest year-over-year increase in more than 16 years [1], according to the CoreLogic Single-Family Rent Index (SFRI). The index measures changes in rent for single-family rental homes, including condominiums, using repeat rent analysis to measure the same rental properties over time. The increase in December 2021 was more than three times that of December 2020, and although index growth slowed in the summer of 2020, rental growth returned to its pre-pandemic pace in October 2020.

Single-Family Home Rent Growth by Price Level

Rental growth continued at a rapid pace for all price categories in December. Low price tier is defined as properties with rental prices below 75% of area median rent, and high price tier is defined as properties with rental prices above 125% of rent median of a region (Figure 1).

Rent prices for the low-priced tier increased by 11.2% year-on-year in December 2021, compared to 3.9% in December 2020. At the same time, high-priced rents increased by 11, 9% in December 2021, compared to a gain of 4.5% in December 2020. This is the fastest increase in the history of the SFRI for the low-priced and high-priced rent brackets.

Figure 1: Year-over-year percentage change in the National Single-Family Home Rent Index by price class

Single-Family Home Rent Growth by Property Type

Differences in rent growth by property type [2] emerged post-pandemic as renters sought stand-alone properties in low-density areas (Figure 2), although the most recent data shows rent growth has slowed slightly for single-family properties and continued to pick up. reinforce for adjoining properties, bringing the relationship between individual and adjoining properties. rentals at pre-pandemic levels. Annual rent growth for individual rentals was 12.1% in December, compared to 11.4% for adjoining rentals.

Figure 2: Slower rent growth for detached properties and strengthened attached properties

Results at metropolitan level

Figure 3 shows the year-over-year change in the Rent Index for 20 major metro areas in December 2021. Of the 20 metro areas shown, Miami, with a 35.7% increase, was marked with the highest annual rent. growth in December, followed by Phoenix at 18.9%. Washington, DC saw the smallest increase at 5.3%, and Boston (+12.4%) saw a significant improvement from a year ago, when rents fell 6.3%. The 20 metros shown in Figure 3 recorded higher rent growth than the previous year.

Figure 3: Year-over-year percentage change in single-family home rent index in 20 markets

Single-family rental prices in 2021 have increased more than three times the 2020 rate. Affordability issues and limited supply have created barriers to home buying for many potential buyers. These factors have resulted in strong demand for single-family rentals and added pressure on the market, with vacancy rates also hitting historic lows. While slowing house price appreciation could help gradually balance demand in the rental market, rental prices are likely to remain high throughout the year.

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[1] The Single Family Rent Index series begins in January 2004.

[2] The detached property type level is defined as properties with a self-contained residential building, and the attached property type level is defined as a single family dwelling that is attached to other single family dwellings, which includes duplexes, triplexes, quadplexes, townhouses, townhouses, condos and co-ops.