Rent Growth Continues to Relax in September

Single-family rent prices increased by 2.6% year over year in September, according to a new report from CoreLogic. This is the 17th straight month of a slowdown in increases.

CoreLogic’s Single-Family Rent Index for September found that rental costs declined by -0.2% from August to September, which is in line with seasonal trends recorded over the 15 years before the pandemic.

The report examines four tiers of rental prices to gain a detailed view of single-family rents. The national single-family rent growth across the four tiers, and the year-over-year changes, were as follows:

  • Lower-priced (75% or less than the regional median): up 3.6%, down from 12% in September 2022
  • Lower-middle priced (75% to 100% of the regional median): up 3.1%, down from 11.4% in September 2022
  • Higher-middle priced (100% to 125% of the regional median): up 2.3%, down from 10.6% in September 2022
  • Higher-priced (125% or more than the regional median): up 1.9%, down from 8.7% in September 2022
  • Attached versus detached: Attached single-family rental prices grew by 3% year over year in September, compared with the 2% increase for detached rentals

Major takeaway:

Of the 20 metros the report tracks, St. Louis posted the highest year-over-year increase in single-family rents at 6.5%. San Diego registered the second-highest annual gain at 6%, followed by Boston at 5.1%. Austin (-1.4%), Miami (-0.7%) and Las Vegas (-0.2%) continued to post annual declines.

“Single-family rent growth eased again in September and is now back to the rate recorded before the pandemic,” said Molly Boesel, principal economist for CoreLogic. “While low-tier rental gains are slowing, they have still surpassed those of their higher-priced counterparts since early 2020. Slowing month-over-month rent growth in September reflects typical seasonal patterns, but indications are that annual gains will remain positive through the rest of 2023.”

For the full report, click here.

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