Read more: US Home Affordability Reaches Ten Year Low
Rentals in all price categories increased in June. Low-end rental prices (properties with rents less than 75% of the regional median) rose 2.3% year-on-year. Both below average prices (from 75% to 100% of the regional median) and above average prices (from 100% to 125% of the regional median) showed an annual increase of 1.5%. Rentals at a higher price (125% or more than the regional average) increased by 1.2% compared to the same period last year.
Phoenix remains the metro with the highest annual single-family rent growth in June 2021 at 16.5%. This is followed by Las Vegas (12.9%), Tucson, Arizona (12.5%), Miami (12.4%) and Austin (11.9%).
Meanwhile, rental prices in Boston are falling. For 11 months in a row, the metro saw the strongest decrease in rental rates – by 2.7% in June.
“Hot housing conditions have exacerbated the problems of finding affordable rental properties for some consumers. According to a recent survey by CoreLogic, 85% of home-looking consumers said they prefer single-family homes, ”said CoreLogic. “However, there is still a shortage of inventory for sale as construction continues to lag. This not only discourages many potential buyers from looking for single-family rentals, but also contributes to reduced availability and higher prices for these properties. As space and affordability remain top priorities for tenants, we can expect to see the same trend as the sales market – increased migration to less densely populated and inexpensive areas. ”