The demand for single-family home rentals has remained extraordinarily strong for the past year. Since the pandemic, many Americans have been moving out of multi-family units in search of single-family homes that provide more space. This led to single-family rent price growth throughout 2020. Recently, CoreLogic released its Single Family Rent Index (SFRI), which analyzed single-family rent price changes nationally and across major metropolitan areas. Needless to say, the results were quite eye-opening. According to data through October 2021, the year-over-year rent price increase for single-family homes was an astounding 10.9%. This figure more than tripled the 3.2% year-over-year growth rate seen in October 2020.
Not surprisingly, vacancy rates for the single-family home market have remained at 25 year lows as demand remains considerably strong. Frustrated buyers that are unable to buy homes in this competitive market are also being forced to re-enter the rental market, thus creating even more competition for these homes. Overall, single-family home rent growth hit its sixth consecutive record high in October 2021, mirroring record price increases in the for-sale housing market.
Rent growth by tier
To obtain a more detailed view of the single-family home rental market, the CoreLogic analysis looked at four tiers of rental prices. The results are as follows:
- Lower-priced (75% or less than the regional median): 9.5%, up from 2.8% in October 2020
- Lower-middle priced (75% to 100% of the regional median): 10.1%, up from 2.8% in October 2020
- Higher-middle priced (100% to 125% of the regional median): 11.3%, up from 3% in October 2020
- Higher-priced (125% or more than the regional median): 11.4%, up from 3.5% in October 2020
As evidenced by this report, single-family rental growth rates have more than tripled over the past year. Of course, these figures vary depending on the metro area. In fact, the Miami metro market had the highest year-over-year increase in single-family rental growth rates in October 2021 at 29.7%. This is a testament to the popularity of South Florida real estate right now. With a record number of Americans moving to The Sunshine State, we continue to see strong demand in both the for sale and rental markets.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!