Single-Family Rents Post First Annual Decrease in 14 Years

Rent gains inched up again to 3.4% on an annual basis in March, with the median monthly cost for a U.S. three-bedroom home at $2,052 in February, according to the CoreLogic Single-Family Rent Index, which analyzes single-family rent price changes nationally and across major metropolitan areas.

However, attached single-family rental prices declined by -0.6% year over year in March, compared with the 3.4% increase for detached rentals — marking the first annual decrease in this category in 14 year. Overbuilt areas, such as Austin, Texas continued to soften, decreasing by 3.5% annually in March, according to the report.

But overall these latest SFR numbers, especially for detached rentals, illustrate its core strength right now — namely that potential homebuyers who are priced out of the home-purchase market are choosing to rent similar alternatives, according to Molly Boesel, principal economist for CoreLogic.

Only six of the 20 markets tracked by CoreLogic posted rental prices that were less expensive than the national average.

Seattle posted the highest year-over-year increase in single-family rents in March 2024, at 6.3%. New York was second highest in annual gains at 5.3% and Boston was at 5.2%.

Three metros in the South showed annual declines.

Coastal job hubs again led for rent growth, which indicates that Americans who rent in expensive metros can afford the additional cost burden, because of higher wages in many job sectors, and also aided by the fact that the US unemployment rate has remained below 4% for more than two years.