- Annual single-family rent growth dropped to 1.7% in October, its lowest level since June 2020, and below the decade-long average of 3%.
- Some markets saw above-average growth, with Detroit and Washington, DC leading at 6% and 4.5% annual increases, respectively.
- High-end rental prices rose by 2.4%, outpacing the 2.0% increase for low-end rentals.
- Detached rental homes experienced a stronger 1.8% growth compared to a modest 0.8% gain for attached properties.
CoreLogic’s October data reveals that single-family rent growth is slowing down across the country, as reported by GlobeSt.
By The Numbers
Annual rent growth fell to 1.7%, down from 2.3% in 2023, marking its lowest level in over three years. Monthly rent growth also saw a notable decline, slipping 1.5%, well below the average 0.5% dips typically seen from 2004 to 2019.
The CoreLogic report also highlighted differences in rent growth by price tiers:
- High-end rents grew by 2.4% YoY, slightly above the 1.8% growth seen in October 2023.
- Low-end rents slowed to a 2.0% increase compared to the 3.0% rise recorded a year ago.
Finally, detached single-family homes outperformed attached rental properties. Detached home rents rose by 1.8% in October, more than double the 0.8% growth seen in attached units, underscoring stronger demand for standalone rental homes.
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Region by Region
While many markets, especially in the US South and West, reported slowing rent growth, others bucked the trend. Detroit led the nation with a 6% annual rent hike, followed by Washington, DC, at 4.5%.
Unfortunately, Austin (-3%), Phoenix (-1.2%), Orlando (-1.1%), and Dallas (-1%) saw rent drops, reflecting cooling demand after intense post-pandemic rent surges in these regions.
Looking Ahead
The slowing rent growth signals a potential shift in the rental market, with overall demand cooling after years of rapid increases.
While some metros continue to see above-average rent growth, regional differences highlight the varying dynamics at play across the US. Rental market participants should monitor these trends closely as economic conditions and housing preferences evolve.
