Residential Real Estate News
Single-family Rent Growth in U.S. Slows to Lowest Rate in 14 Years
CoreLogic's latest Single-Family Rent Index reveals that Detroit led the nation in year-over-year rent growth among 20 major markets in November 2024, with a 6.1% increase. In October, the median rent for a three-bedroom home in Detroit was $1,777, making it one of only three metro areas with an average monthly rent under $2,000. This highlights a growing trend of Americans seeking more affordable housing options, especially in the Midwest. The other two sub-$2,000 rental markets were Philadelphia ($1,634) and Houston ($1,921). Meanwhile, Washington, D.C., recorded a 5.5% increase, likely influenced by job changes associated with a new political administration.
"Single-family annual rent growth slowed in November to the lowest rate in about 14 years," said Molly Boesel, CoreLogic's senior principal economist. "Wage growth outpaced single-family rent growth for much of the past two years, which kept rent increases in positive territory. Despite this slowdown, demand for rentals should remain strong as wage and job growth are expected to continue this year."
To provide a comprehensive view of single-family rental price trends, CoreLogic analyzed four price tiers and two property types. National rent growth and year-over-year changes within these segments were as follows:
- Lower-priced rentals (75% or less of the regional median): Up 1.9%, down from 2.8% in November 2023
- Lower-middle priced rentals (75%-100% of the regional median): Up 1.7%, down from 2.6% in November 2023
- Higher-middle priced rentals (100%-125% of the regional median): Up 1.5%, down from 2.3% in November 2023
- Higher-priced rentals (125% or more of the regional median): Up 2.2%, up from 2.0% in November 2023
- Attached rentals (e.g., townhomes): Up 1% year-over-year
- Detached rentals (e.g., standalone homes): Up 1.7% year-over-year
Among major markets, Detroit saw the highest annual rent increase in November 2024, at 6.1%. Washington, D.C., followed at 5.5%, with Honolulu in third place at 4.3%. In contrast, some markets experienced rent declines, including Austin, Texas (-2.4%); Boston (-1.5%); Phoenix (-1.2%); and Tucson (-0.4%). Other cities with slight declines included Dallas, Orlando, and San Diego, all at -0.3%.
