Read more: US housing affordability hits decade-low
Rent across all price tiers increased in June. Rent prices among the low-end tier (properties with rent less than 75% of the regional median) were up 2.3% year over year. Both lower-middle priced (75% to 100% of the regional median) and higher-middle priced (100% to 125% of the regional median) posted an annual gain of 1.5%. Higher-priced rentals (125% or more than the regional median) saw a 1.2% year-over-year increase.
Phoenix remains the metro with the highest year-over-year increase in single-family rents in June 2021 at 16.5%. Las Vegas (12.9%), Tucson, Ariz. (12.5%), Miami (12.4%), and Austin (11.9%) followed.
Meanwhile, rent prices in Boston are plunging. For 11 consecutive months, the metro saw the largest decrease in rent prices, down by 2.7% in June.
“Hot housing market conditions have exacerbated the challenges of finding affordable rental properties for some consumers. According to a recent CoreLogic survey, 85% of consumers searching for a home said they prefer single-family homes,” CoreLogic said in a release. “However, for-sale inventory remains in short supply as construction continues to lag. Not only is this keeping many would-be buyers on the hunt for single-family rentals, but it’s also contributing to the dwindling availability and increasing prices of these properties. As space and affordability remain top priorities for renters, we can expect to see a similar trend as the for-sale market — increased migration to less dense and lower-cost areas.”