Certain Cities Are More Likely to Experience Faster SFR Rent Growth
Single-family rent growth in the New York City area was about one-half that of the US.
Rent growth has accelerated faster than at any time since the CoreLogic Single-family Rent Index has been keeping track of the data starting in 2005.
“The double-digit rise of the past year is eight percentage points faster than measured one year earlier,” the firm pointed out.
CoreLogic predicted rent growth for detached houses will remain strong this year.
Rent growth, though, varied depending on the makeup of the city.
For example, large cities with high population density and relatively few detached houses generally experienced slower rent growth compared to other places this past year, as prospective tenants often sought homes in suburban and exurban communities, CoreLogic noted.
As an example, it said single-family rent growth in the New York City area was about one-half that of the US, reflecting both the larger proportion of attached single-family homes and the greater population density of the inner suburbs which led many tenants to seek a home outside the metro area with detached houses in New York experiencing much less rent growth than in the rest of the US.
About 44% of one-family rental homes are attached in the New York metro, compared with 19% nationwide, the firm added.
Broadly, CoreLogic said cities with a dense population and few detached houses had slower rent growth as tenants preferred one-family detached houses over apartments during the pandemic.