Inflation hitting residential rents hard with double-digit increases in many U.S. cities
According to Miami CoreLogic’s latest Single-Family Rent Index (SFRI), data for September 2021 shows a national rent of 10.2% per year, up from 2.6% per year in September 2020.
Buyers always feel the push and pull between the buy and rent market. While the demand for housing is still high – 93% of consumers agree that owning a home is a good financial investment according to a recent CoreLogic survey – competitive conditions in the buying market are creating huge waves of demand home rentals offer more financial flexibility. . Although the rental market for a particular home faces supply issues similar to those in the Miami retail market, we can expect rents to continue to rise, especially in high-end properties, as tenants are looking for more space.
“The single-family home vacancy Miami rate remained near a 25-year low in the third quarter of 2021, doubling annual rental growth in September,” said Molly Boesel, chief economist at CoreLogic. “Rental growth is expected to remain stable for the foreseeable future, especially as the labor market improves and demand for larger housing continues.”
In Miami’s 20-yard coverage area, single-family home rents increased the most each year in September 2021, by 25.7%, followed by Phoenix by 19.8% and Las Vegas by 15.9%. These major indicators will continue to grow rapidly with the return of tourism and the local labor market. Boston posted the second-weakest rental growth, while September was the second consecutive month single-family home rents in the market rose after falling 14 months.
To get a detailed picture of rental rates for single-family homes, CoreLogic analyzes four rent levels. The national growth in apartment rentals on four levels and changes each year as follows:
• Lower and middle price (75% to 100% of the regional median): 9.3% against 2.3% in September 2020
• Above average (100% to 125% of regional median): 10.5%, over 2.4% in September 2020
• Higher price (at least 125% of the regional median): 11% against 2.8% in September 2020