Coastal Cities Lead As Single-Family Rent Growth Soars To 10-Month High
Rental price growth for single-family apartments surged 3.4 percent in February, with Boston, Seattle and New York City rising fastest among U.S. cities, according to CoreLogic data released Tuesday.
At Inman Connect Las Vegas, July 30-Aug. 1 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.
Bustling coastal cities led the way as rental price growth for single-family apartments rose by 3.4 percent in February to the largest annual increase in 10 months, according to data released Tuesday by CoreLogic.
On a regional basis, the data suggests that large coastal cities are returning to the spotlight, with single-family annual rent growth strongest in the New York City area at 6.9 percent, followed by Seattle at 6.8 percent and Boston at 6.4 percent. Those cities all have median three-bedroom rent prices of more than $3,200, compared to the national median of around $2,100.
This contrasts to last February, when the more affordable cities of St. Louis, Charlotte and Orlando led the nation for single family rent growth, according to CoreLogic data.
“Single-family rent growth regained strength in February, posting the highest annual appreciation since April 2023,” Molly Boesel, principal economist for CoreLogic, said in a statement. “Monthly rent growth also picked up in February and was higher than what is typically recorded in winter months.”
CoreLogic
Coming off extended periods of intense price growth, Miami and Austin were the only two cities to record annual price decreases, with rents slipping 3.1 percent year over year in Miami and 1.3 percent in Austin.
Annual price growth remained muted compared to the levels recorded in February 2023. Only high-priced rentals — priced at 125 percent or more of the regional median rent — saw an annual increase in growth from 3.1 percent in 2023 to 3.2 percent in 2024.
Higher middle priced units fell from a 4.4 percent increase in 2024 to a 3.1 percent increase in 2024, lower middle priced units fell from a 5.7 percent increase to a 3.1 percent increase and lower priced units fell to a 2.5 percent increase from a 7.3 percent increase, according to CoreLogic.
Growth disparity was also seen in detached single family rentals versus attached rentals, with detached properties experiencing 3.7 year over year growth and attached properties seeing rent grow by 2.9 percent.