Rent Prices Soaring

CoreLogic, Irvine, Calif., said single-family rent prices experienced extensive growth during 2021, increasing an average of 7.8% compared to 2.6% in 2020. The company’s Single-Family Rent Index also reported on a monthly basis, rent prices ended the year with a 12% annual increase in December, up from 3.9% a year ago. Molly Boesel, principal economist with CoreLogic, said affordability challenges and limited supply created barriers to home purchasing for many prospective buyers. She said this factor drove elevated demand for single-family rentals and put increased pressure on the market as vacancy rates also hit historical lows.

The report also noted differences in rent growth by property type emerged after the pandemic as renters sought out standalone properties in lower density areas. This trend drove an acceleration in rent growth for detached rentals in 2021 while growth for attached rentals slowed. However, as rental inventory has remained slim, the gap between attached and detached rental growth started to close in the latter part of the year, with gains of 11.3% and 12.1% respectively in December. This is the closest that attached and detached growth rates have been since April 2020.

Source: CoreLogic