Single-family rents rose by 12.6% YOY in January to another record high, with Miami leading U.S. cities in rent growth.
CoreLogic’s Single-Family Rent Index (SFRI) found that rent growth exploded in January. The increase is especially shocking compared to January 2021’s mere 3.9% annual increase.
“Single-family rent growth extended its record-breaking price growth streak to 10 consecutive months in January,” said Molly Boesel, principal economist at CoreLogic.
“Rents increased across the country, and the gains were highest in the Sun Belt, which also had strong population growth last year.”
All metro areas analyzed by CoreLogic saw annual growth, with Sun Belt cities leading the pack.
Miami once again had the highest YOY growth at 38.6%. In January 2021, Miami rents only rose by 2.2%. The second and third place cities (Orlando with 19.9% and Phoenix with 18.9%) trailed behind by nearly 20%.
Washington, D.C. had the lowest rent price growth at 5.6% YOY.
Lower-middle priced and higher-middle priced rentals saw the largest gains, of 13.3% and 13.4%, respectively. But lower-priced and higher-priced rentals were only a step behind with 12% and 12.2% annual growth.
Rent growth is rising as stock shortages spur competition and potential homebuyers who can’t keep up with soaring home prices flood the market. Six million U.S. homes are now worth $1 million or more.
“The surge in housing values has turned many homeowners into millionaires, but has pushed homeownership out of reach for a lot of other Americans,” said Redfin Deputy Chief Economist Taylor Marr.
“Incomes have increased, but not as fast as home prices, which means many people are stuck renting or have to move somewhere more affordable if they want to buy a home.”