May 27 2018 17824 1

Dated: 05/27/2018

Views: 229

CoreLogic Reports

CoreLogic Reports US Single-Family Rent Prices Increased 2.8 Percent Year Over Year in January 2018

-Low-end rentals show significantly higher rent increases-

  • Las Vegas had the highest year-over-year rent price increase, at 4.8 percent in January 2018

  • Low-end rental prices were up 3.8 percent compared to high-end price gains of 2.4 percent.

CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its latest Single-Family Rent Index, which analyzes single-family rent price changes nationally and among 20 metropolitan areas. Data collected for January 2018 shows a national rent increase of 2.8 percent, compared to 2.6 percent in January 2017.

Low rental home inventory, relative to demand, fuels the growth of single-family rent prices. The Rent Index shows that single-family rent prices have climbed between 2010 and 2018; however, year-over-year rent price increases have slowed since February 2016, when they peaked at 4.1 percent.

National rent growth in January 2018 was pulled down by high-end rentals, which are defined as properties with rent prices 125 percent or more of a region’s median rent. High-end rent prices increased 2.4 percent year over year in January 2018, up from a gain of 1.5 percent in January 2017. Rent prices among low-end rentals (properties with rent prices less than 75 percent of the regional median) increased 3.8 percent in January 2018, down from a gain of 4.7 percent in January 2017.

Among the 20 analyzed areas shown in Table 1, Las Vegas had the highest year-over-year increase in single-family rents in January 2018, at 4.8 percent (compared with January 2017), followed by Orlando and Phoenix. Urban Honolulu is the only metro among the 20 analyzed with decreasing rent prices, declining 1.1 percent year over year in January 2018.

Metro areas with limited new construction, low rental vacancies and strong local economies that attract new employees tend to have stronger rent growth. Orlando and Phoenix both experienced 4.5 percent year-over-year rent growth in January 2018, driven by employment growth of 3.6 percent and 2.7 percent, respectively, year over year. This is compared with the national employment growth average of 1.4 percent, according to data from the United States Bureau of Labor Statistics. Of the 20 metros analyzed, Chicago experienced the lowest employment growth, which could be a factor in its low rent growth. Rent prices continue to increase in disaster areas like the Houston metro area, which experienced growth of 2.8 percent year over year. This is up from a 1.2 percent increase in October 2017, which was the first rent increase for Houston since April 2016.

“Single-family rent price growth remained solid in January,” said Molly Boesel, principal economist for CoreLogic. “High demand and low supply for entry-level properties drove lower-priced rentals to have faster price growth than higher-priced rentals, revealing affordability pressures in this segment of the rental market.”

Methodology

The single-family rental market accounts for half of the rental housing stock, yet unlike the multifamily market, which has many different sources of rent data, there is minimal quality adjusted single-family rent transaction data. The CoreLogic Single-Family Repeat Rent Index (SFRI) serves to fill that void by applying a repeat pairing methodology to single-family rental listing data in the Multiple Listing Service. CoreLogic constructed the SFRI for 70 Core Based Statistical Areas (CBSAs)—including 20 CBSAs with four value tiers—and a national composite index.


Blog author image

Robb Barr BRE 01948048

Robb is a Realtor® at eXp Realty. He has lived in Los Angeles and Ventura County his entire life. He covers the San Fernando Valley, Acton and the Santa Clarita Valley. He also covers the Ventura Co....

Latest Blog Posts

Video Games and Real Estate

I know when you first think about the two there is no relation, but for me there actually is. Growing up I played a lot of video games, mostly RPGs, and my favorites were those with a great story, a

Read More

Mistakes To Avoid On Your First Buy or Sell - San Gabriel Living

             If this the first time you're considering buying a home, or selling your first purchase, there are a lot of possible challenges you can end up facing.

Read More

Simple Sprucing Tips For Your Home - San Gabriel Living

You don't need thousands of dollars to fully refurbish your home to make it feel like new again. Instead, you can DIY a lot of features in your house to help spruce it up for the upcoming season.

Read More

Home Buyer Credit upto $20,000

The Hero Homebuyer Credit will reduce the amount of money needed to purchase a home by covering up to $20,000 in closing costs and expenses. Watch this video to learn more about the homebuyer credit

Read More