The latest reports indicate that inflation is currently at a whopping 7.5%. This is a 40-year high and thus is presenting significant challenges for many Americans. Over the past year, one area of the economy that was certainly not spared from inflationary impacts is the single-family home rental market. According to the Corelogic Single-Family Rent Index (SFRI), last year saw an average increase in rent prices for single family homes rise of 7.6%. This equated to a nearly tripling from the 2.6% increase observed in 2020.
- As of December 2021: on a monthly basis, single-family rents increased annually by 12% (as compared to 3.9% in December 2020)
- Lower-priced homes (75% or less than the regional median): increased by 11.2%
- Lower-middle priced (75% to 100% of the regional median): increased by 12.4%
- Higher-middle priced (100% to 125% of the regional median): increased by 12.5%
- Higher-priced (125% or more than the regional median): increased by 11.9%
- At the national level, Miami had the highest year-over-year increase in single-family rents in December 2021 at 35.7%
- At the national level, Orlando had the third highest year-over-year increase in single-family rents in December 2021 at 17.9%
Bolstered by increasing employment and low vacancy rates, rent growth for single-family homes had a record year in 2021. With this said, rents comprise approximately 1/3 of the Consumer Price Index (CPI). Therefore, this rent growth certainly helped fuel the record-level inflation taking place. With this said, most economists are predicting rental price growth to stabilize somewhat while inflation remains elevated for much of the year.
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!