After a slowdown in rental growth during the spring and summer of 2020, rent is back on the rise. A new report from CoreLogic shows that national single-family rental prices increased 3.7% year-over-year in November and are now above the levels before the COVID-19 pandemic started. “This is in contrast to rents for multifamily properties, which have decreased as tenant preferences shifted away from high-density apartment buildings to low-density, single-family homes,” said Molly Boesel, principal economist at CoreLogic.
Meanwhile, single-family homes for rent are becoming more of a draw due to their extra space. Single-family rental inventories, however, have fallen across price tiers. Lower-priced rentals are seeing the greatest vacancies and rent growth in that area has lagged the most behind other price tiers, CoreLogic said. “Employment rates continue to fluctuate across the country, with some regions and metros experiencing higher job loss rates than others,” CoreLogic said in its report. “Still, as employment slowly improves, the rental market likewise continues to stabilize.”