E Economics

Corelogic: US Rents Rose At The Fastest Pace Since At Least January 2005

21 July, 2021
us rents

After US rents took a hit in 2020, they rebounded sharply in 2021 with Corelogic data (May) pointing to the fastest growth since at least January 2005.

Since a few months, one of the key developments in the US housing market has been the rebound of rents. “U.S. single-family rent growth increased 6.6% in May 2021, the fastest year-over-year increase since at least January 2005, according to the CoreLogic Single-Family Rent Index (SFRI). The May 2021 increase was nearly four times the May 2020 increase.” Looking at the details, “Rent growth of detached properties reached 9.2% in May, while rent growth for attached properties was 3.6%.

As I already discussed earlier this week, this spike of US rents has been also identified by other data providers. According to Rick Palacios Jr. (Director of Research at John Burns Real Estate Consulting), “rental demand for single-family homes remains extremely strong. His firm’s index shows new lease rents for single-family homes up 6% Y/Y nationally in May.” The firm calculates single-family rents in 63 major markets across the country.

Figures for June suggest that the trend has strenghtened recently. “The Zillow Observed Rent Index (ZORI) was up 1.8% month over month, pushing typical U.S. rents to $1,799/month in June. A strong recovery in the rental market over the past few months pushed year-over-year rent growth up 7.1% — the largest annual increase in the series’ history reaching back to 2015.

Lastly, According to Apartment List, the median national rent climbed 9.2% in the first half of 2021. On a YoY basis, the median national rent rose 8.4% in June (largest increase since the firm tracked data and up from 5.6% in May).