Rent Gains are Setting Records Too
While home prices have been posting record increases for months, it appears that rents are trying to keep up. CoreLogic says the connection is clear. The company’s Single-Family Rent Index, which analyzes single-family rent price changes nationally and across major metropolitan areas, shows rent growth in June was the highest since at least 2005, an annual gain of 7.5 percent. The increase in June 2020 was 1.4 percent. The company examines the path of single-family rents across four price tiers, and in each, the growth exceeded pre-pandemic rates for the third straight month. In the lower-priced tier of homes, those that rent for up to 75 percent of the regional median, rents increased 5.3 percent in June compared to 2.3 percent a year earlier. The lower-middle tier, with rents from 75 to 100 percent of the median, saw an annual increase of 6.4 percent against only 1.5 percent in June 2020. Higher-middle priced rents, those in the 100 to 125 percent bracket, were up 7.1 percent, up from 1.5 percent the prior June. In the higher-priced tier, those single-families with rents more than 125 percent of the median, rents jumped 9.6 percent. The gain in June 2020 was 1.2 percent.
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