According to CoreLogic's new Single-Family Rent Index (SFRI), national rent increased by 3.9 percent year over year in February 2021, up from a 3 percent rise in February 2020. doha sale
High demand and low rental supply inventory have resulted in increasing rental prices at almost every price tier as families seek more room and face housing affordability issues. Rent growth slowed in the spring of 2020 after rising at a pace of about 3% per year since mid-2018, but bounced back in three of the four tiers to surpass the pre-pandemic rate starting in October 2020. However, rent price growth in the low-priced tier tends to lag behind that in the high-priced tier, reflecting the country's uneven employment recovery, which is often referred to as a "K-shaped recovery." As the recession continues to disproportionately impact lower-wage jobs, rent growth in the low-price tier remains below pre-pandemic peaks.
"While single-family rent increases were above the pre-pandemic average in February," said Molly Boesel, principal economist at CoreLogic, "renters are not experiencing recovery in the same way across the board." "We can see a balance of recovery as vaccination eligibility expands and businesses begin to open their doors in response."
Tucson, Arizona, had the largest year-over-year growth in single-family rentals, at 11.2 percent, among the 20 U.S. metro areas in February 2021. With an increase of 11.1 percent, Phoenix came in second, followed by Atlanta with an increase of 8.1 percent. Boston, on the other hand, saw an annual drop of 8.9% in rent prices and has seen the highest decrease in rent prices of all the metros studied over the past seven months.
In February 2021, Chicago's annual rent decreased by 2.9 percent relative to the previous year. In February 2021, detached rental prices in Chicago rose by 4.2 percent, while attached rental prices decreased by 4.8 percent. This demonstrates the continuing demand for and prioritization of more living space by families.
CoreLogic compares four levels of rental prices to get a more accurate picture of single-family rental prices. The following are the year-over-year shifts in national single-family rent growth across the four tiers:
Lower-cost homes (those that cost 75% or less than the area median): 2.9 percent, down from 3.7 percent in February 2020.
Lower-middle priced homes (between 75% and 100% of the area median): 3.4 percent, up from 3.1 percent in February 2020.
3.9 percent, up from 2.8 percent in February 2020, for higher-middle priced homes (100 percent to 125 percent of the area median).
Priced higher than the regional median (125 percent or more): 4.4 percent, up from 2.7 percent in February 2020.