Rents for single-family homes jumped 2.9% year over year in March, according to the CoreLogic Single-Family Rental Index. The index measures rent changes among single-family rental homes, including condos.
Rents for lower-priced homes are increasing at a faster clip than those of higher-priced homes. Low-end rentals are defined as properties with rents 75% or less than the region’s median rents.
Rents on lower-priced homes rose 3.5% year over year, while rents for higher-priced homes (properties with rents more than 125% of the regional median rent) rose 2.4% year over year, the study showed.
Phoenix is seeing the largest annual rent increase out of the 20 metro areas analyzed. Single-family rents in Phoenix grew by 7.4% in March year-over-year, followed by Las Vegas (6.9%) and Tucson, Ariz. (6.3%). Houston and Miami, on the other hand, saw the largest decreases in single-family rental growth.
Single-family rentals have climbed steadily since 2010, CoreLogic notes. Annual rent increases have shown some signs of stabilizing between 2.7% to 3.1% over the last year, researchers note.