Low inventories of rental homes as well as strong job growth are fueling increases in single-family rent prices, CoreLogic reported Tuesday.
U.S. single-family rental prices rose 2.9 percent year-over-year in April. CoreLogic analyzed single-family rental price changes nationally and among 20 metro areas.
Nevertheless, the year-over-year rent price has been slowing since February 2016, after peaking at 4.2 percent. It has mostly stabilized over the last year with a month average of 2.7 percent, CoreLogic reports.
Metros with limited construction, low rental vacancies, and strong local economies with job growth are seeing the strongest rent growth. Las Vegas posted the highest year-over-year rent increase at 5.9 percent in April, followed by Phoenix at 5.5 percent and Orlando at 5.3 percent. Orlando and Phoenix have seen employment growth increase by 3.2 percent and 2.8 percent, respectively, over the past year (compared to a national employment growth average of 1.6 percent).
“Rent prices increased significantly across the country in April, with the southwest region showing the highest growth rates,” says Molly Boesel, principal economist at CoreLogic. “National employment growth has remained steady in 2018, which could be a driver of continued rent increases.”
Out of the analyzed metros, Honolulu was the only area that had decreasing rent prices in April, falling 0.3 percent year-over-year in April.
