Super-Charged Rents
CoreLogic published a report citing that US single-family rents have surged by 10.2% year-over-year in September. This is the fastest rate of growth year-over-year ever recorded by CoreLogic in the last 16 years. 
Not all markets grew at the same rate: as in the case of Miami, Phoenix, and Las Vegas, which grew by 25.7%, 19.8% and 15.9% respectively, year-over-year.
According to the report, the double-digit growth for single-family rents was nearly four times that which was reported back in September 2020, which came in at 2.6% year-over-year.
The growth in the cost for a single-family home rentals is being fueled by the stronger economy, the growth in family formations and also due to the shortage of available single-family homes for sale which are currently at record prices.
Rental growth has been above 1% year-over-year since late 2010, and has been trending between 3% and 5% from 2011 to 2020. With the pandemic, rents dropped slightly from about 4% to 2% year-over-year in 2020.
CoreLogic also indicated that rent growth for detached properties was nearly double that of attached properties: 7.8% vs 12.2%, respectively.
According to CoreLogic, Chicago had the lowest increase coming in at 2.8% and Boston at 4%. CoreLogic tracks 4 different rental categories:
■ Lower-priced which increased by 8.3% in September 2021 from September 2020.
■ Low-to-middle priced, which increased by 9.3% year-over-year in 2021.
■ Higher middle-priced single-family, which increased 10.5% from September 2020.
■ High-priced single-family rentals, which increased by 11% year-over-year from September 2020.
It appears a great deal of the demand is being reflected in regions that are not urban or city-dwellings. The pandemic clearly has taking a great deal of the demand away from city rentals and repositioned them in the suburbs especially since much of the economy has transitioned into a work-from-home model.
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