Rent increases back to pre-covid levels

Rent increases back to pre-covid levels

Single-family rents have risen in the post-pandemic environment but are now moderate to annual levels in pre-pandemic years from 2010 to 2019. CoreLogic’s Single-Family Rent Index (SFRI) posted a 3.4 percent annual increase in May. Since the start of the pandemic, average single-family rents have increased by $470, or 30 percent. However, the company does not expect rents to drop in the near term. “After increasing at an accelerated pace for more than two years, annual growth in single-family rents returned to its pre-pandemic rate in May,” said Molly Bussell, chief economist at CoreLogic. High inflation may affect tenants’ ability to absorb ever-increasing monthly payments, which can keep annual rent increases relatively low. However, even in the current economic environment, monthly single-family rent increases returned to a typical seasonal pattern in February of this year, indicating that single-family rents are poised to continue increasing throughout 2023.” The Chicago area had the highest annual increase among the largest 20 markets up 6.6%.The median monthly rent in this metro is currently $2,327.Charlotte, North Carolina had the second largest annual gain, up 5.9%, followed by Boston and New York, down 5.7% each.Of 20 stations Metro Shown in Table 1, Chicago had the highest annual increase in single-family rents in May 2023, at 6.6%.Charlotte, North Carolina ranked second with an annual gain of 5.9%, followed by Boston and New York (both at 5.7%).The metro area was Las Vegas is the only metro to report a decrease.Rents fell 1.3 percent but remained at an average of $2,143 in May.Lower-priced properties saw an increase more than double those in the highest-end.The increase in properties with lower rents rose 75 percent cent at least below the regional average at 5.6 percent compared to 2.1 percent for those with rents at least 125 percent higher than the average. A year ago, the bottom group saw an increase of 14.4 percent while the top tier was up 13 percent. The lower middle class price rose 4.3 percent, and the upper middle price class rose 3.7 percent. Both have grown at an annual rate of approximately 15 percent in May 2022. Price increases are narrowing for both attached and detached single-family homes but remain higher for attached units. That group increased by 4.2 per cent while detached rents grew by 2.5 per cent.

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