Year-over-year rent growth cooled for single-family rentals.
January 23, 2023 |
Updated January 23, 2023
Single-family rent has declined for seven straight months. The latest Single-Family Rent Index from CoreLogic shows year-over-year (YoY) rent growth in November 2022 at 7.5%. All four pricing tiers measured saw a decline as well.
Year-over-year changes across the four tiers—lower-priced, lower-middle priced, higher-middle priced and higher-priced—had rent growth in the single-digits for three of the four categories. Lower-priced slipped from 10.9% YoY growth in November 2021 to 10.1% in November 2022.
Lower-middle declined from 11.9% to 8.2%; higher-middle went from 12.5% to 7.2%; and higher-priced rentals declined from 12.3% to 6.5%. Much of the higher rent growth areas focused around the Sun Belt and warmer markets like Florida, Texas and Arizona. Orlando, Fla., had the highest YoY rent growth at 13.4%
“An increase in single-family rental inventory is cooling price growth rapidly,” said Molly Boesel, Principal Economist with CoreLogic, in a release. “November’s annual U.S. rent growth was the slowest since May 2021 and two of the previously hottest markets — Phoenix and Las Vegas — posted the lowest gains among major metro areas. Looking forward, rent growth should continue to moderate and better balance market conditions.”