The pace of rental growth more than doubled from a year ago, reaching 14 percent for a single-family home in April.
In a changing real estate market, the advice and expertise that Inman provides is more valuable than ever. From our events to our daily coverage and how-to journalism, we’re here to help you build your business, use the right tools – and make money. Visit us in person at Connect in Las Vegas and use your Select subscription to get all the information you need to make the right decisions. When the water gets choppy, trust Inman to help you navigate.
Rental prices continue to rise at record speed, single-family homes are rented 14 percent more expensive this year than a year ago.
And if that’s not bad news for a growing pool of tenants, many of whom have already been priced out of the buyer’s market, it gets worse.
“We expect single-family home rental growth to continue to accelerate rapidly throughout 2022,” said Molly Boesel, chief economist at CoreLogic, a real estate data company that tracks home price growth.
The cost of a single-family rental in April was 14 percent higher than a year ago, according to a report released Tuesday by CoreLogic. That’s more than double what it was in April 2021 and six times what it was in April 2020. It was the 13th straight month of record-breaking annual gains.
The sustained and rapid growth is due to a shortage of rental properties in the market and a thriving job market, the report said.
“Rents for single-family homes continue to rise to record levels,” said Boesel. “In April, rental growth put upward pressure on inflation, which rose at the fastest rate in almost 40 years.
Miami continued its breakneck rental growth, with single-family rents costing 40.8 percent more in April 2022 than a year ago. (In April 2021, rent was growing at an annual rate of 5.6 percent.)
Orlando, Florida and Phoenix followed Miami with the second and third highest price growth. Rents rose 25.8 percent in Orlando and 17.8 percent in Phoenix.
According to the report, rents grew the slowest in Honolulu (7.7 percent) and Philadelphia (7.8 percent).
“Phoenix’s April unemployment rate of 2.7% is likely to help spur demand and rental cost increases,” the report said, “while Philadelphia’s 6.2% unemployment rate could keep more renters.” , to avoid additional costs.”
CoreLogic says multifamily housing growth has been more moderate than single-family housing due to the surge in demand for the latter caused by the COVID-19 pandemic. The gap is beginning to close.
The sources of rental income, foreclosures, have all but dried up in the same period, and forecasts don’t expect a backlog of distressed properties anytime soon.
April 2022 Rental price opportunities for single-family homes
- cheaper (75 percent or less than the regional median): 13.7 percent, up from 4 percent in April 2021
- Priced in the lower midfield (75 percent to 100 percent of the regional median): 14.4 percent versus 4.4 percent in April 2021
- Higher middle price (100 percent to 125 percent of the regional median): 14.6 percent versus 4.6 percent in April 2021
- higher priced (125 percent or more than the regional median): 13.5 percent versus 6.4 percent in April 2021
Email Taylor Anderson