Pandemic-led Residential Rent Boom is Now Fizzling in the U.S.

Home Rental Growth in U.S. Slows to Lowest Rate in Four Years

CoreLogic’s latest Single-Family Rent Index Report (SFRI) examines changes in single-family rental prices both nationally and across major metropolitan areas. The report reveals a slowdown in rent growth across key U.S. metro areas that experienced population surges during the pandemic.

In September 2024, annual U.S. rent growth rose by 2%, continuing a deceleration that began earlier in the year. This rate is significantly lower than the pre-pandemic decade’s average annual growth of 3.5%. High-end rental prices grew by 2.6%, slightly outpacing low-end price increases, reflecting a trend of renters capitalizing on favorable economic conditions–such as wages rising by 40% since last September–to move into higher-tier properties.

“Single-family annual rent growth slowed in September to the lowest rate in over four years, and monthly rent growth posted a second month of below-seasonal trend growth, making it clear that single-family rent growth is decelerating,” said CoreLogic principal economist Molly Boesel. “While about one-third of metros showed stronger rent growth than in the previous year, more metros showed decreases in rents than in the prior report. While a slowing in rents will be welcome news to renters, increases since 2020 are still at 32%.”

Among the top 20 core-based statistical areas (CBSAs) tracked by CoreLogic, two recorded rent increases of 5% or more, while seven metro areas reported median rents exceeding $3,000.

Detroit led the nation in year-over-year single-family rent growth for September 2024, with a 5.2% increase, followed by Seattle at 5%. Conversely, Austin, Texas, experienced the steepest decline, with rents dropping 2.9% year-over-year, followed by San Diego with a 0.7% decrease.