While vacancy rates for single-family rental homes are at a 25-year low, rents jumped up 10.9% year-over-year for the month of October, over three times the annual growth reported in October 2020. Rising prices are partially a result of a more crowded market comprised of would-be buyers turning to rental properties instead.
With increased demand and very little supply, rent growth is strong in every price tier. Higher-priced units are seeing the greatest increase at a rate of 11.4%, up from 3.5% in October 2020, according to CNBC.
Single-family rents in October were up 10.9% year over year, according to the latest report from CoreLogic. That is three times the 3.2% annual growth seen in October 2020. The jump comes as too much demand meets not enough supply. Vacancy rates on these homes are now at a 25-year low, as an increasingly competitive and pricey for-sale housing market drives more potential buyers to rentals.
“Single-family rent growth hit its sixth consecutive record high in October 2021, mirroring record price increases in the for-sale housing market,” said Molly Boesel, principal economist at CoreLogic.