HOUSTON – (By Dale King, Realty News Report) – Single-family rental rates have skyrocketed. In June, single-family rents are rising at the fastest pace since 2005.
CoreLogic, a global property information, analytics and data-enabled solutions provider, says its Single-Family Rent Index (SFRI) for June 2021 shows a national rent increase of 7.5 percent year-over-year.
“Rent growth continued to exceed pre-pandemic rates across all price tiers for the third consecutive month,” reported CoreLogic in a report on the top 20 metropolitan areas across the nation.
Houston Single-Family Rents Up 8.1 Percent Over Last Year
The state of Texas, which just reported major gains in single-family home sales and rental unit price increases, outperformed the national average for rental of one-family residential units.
“Single-family rent growth accelerated in June, bouncing back from last year’s weak growth,” pointed out Molly Boesel, principal economist at CoreLogic. “The recovery was even more pronounced for detached rentals, which had price rate growth more than double that of attached rentals. Ultimately, for would-be homebuyers who have been either priced out of the market or unable to find a home in today’s supply-constrained market, detached rentals are overwhelmingly preferred — and remain in high demand.”
The CoreLogic report places three Texas metropolitan areas into the upper 10 of the 20 top rental growth markets. The Austin/Round Rock area came in fifth with a year-over-year home rent increase of 11.9 percent, followed by Dallas/Plano, sixth with the rate improving 11.3 percent. In the Houston/The Woodlands/Sugar Land region, single-family rents bumped up 8.1 percent over 2020.
A Zillow rental rate report ranks Houston sixth on the list of cities scoring major year-over-year percentage gains in the one-family home rental market. Lease prices for July 2021 were up to $1,504 a month, an 8.8 percent year-over-year gain.
The rental rate increases come as the home prices have increased significantly this year.
The Zillow assessment offered this explanation: “Rent growth [for July] continued to build on momentum that began in March, following a period of sluggishness that started with the COVID-19 outbreak in 2020. Nationally, typical monthly rents rose to $1,843 in July, surpassing June’s record appreciation and rising 9.2 percent, or $156, above July 2020.”
The Zillow numbers for Texas towns were all in the same ballpark, but also listed San Antonio rents with an 11 percent increase in July and Austin, up 16.8 percent for the same month compared to July of 2020.
Phoenix had the highest year-over-year increase in single-family rents in June 2021 at 16.5 percent, Zillow said. Some tourist destinations hard-hit by the pandemic are also showing strong signs of recovery, with Las Vegas logging the second-highest rent gain of 12.9 percent. Tucson was third at 12.5 percent and Miami, fourth at 12.4 percent.
Down in Beantown
And while Boston has experienced the largest decrease in the 20 metros’ rental rates for 11 consecutive months now (with an annual decline of 2.7 percent in June), the area’s rate of decline is slowing compared to previous months.
Other metros ranked high for annual rent growth are scattered across the Sun Belt, including Tampa (21.4 percent) and Riverside (19.9 percent). July rents are also positive year-over-year in all major metros, with holdouts New York, San Francisco and San Jose finally posting yearly gains.
Aug. 23, 2021 Realty News Report Copyright 2021
For more about Texas real estate, check out the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins. Available on Amazon http://tiny.cc/4a2g6y
“Houston 2020” Ebook version https://tinyurl.com/4xm7z8b5
File: Single Family Rents Skyrocket
File: (2). Molly Boesel. CoreLogic. Single-Family Rent Index (SFRI), Single Family Rents Skyrocket in 2021.