Published by DSNews on July 21, 2020
Lower-priced rentals continued to prop up national rent price growth, continuing a trend from April 2014.
Single-family rents rose 1.7% annually in May 2020—the lowest growth rate since July 2010—according to CoreLogic’s Single-Family Rent Index (SFRI).
CoreLogic noted rental demand is still impacted by unemployment rates and stay-at-home orders, despite local economies reopening.
Lower-priced rentals continued to prop up national rent price growth, continuing a trend from April 2014. Year-over-year growth in both tiers did slow in May 2020. Rent prices in the low-end tier—those with rent prices less than 75% of the regional average—rose 2.8% annually in May 2020.
This represented a 3.5% drop from May 2019. However, higher-priced rentals, which are those with prices more than 125% of the regions’ average rent, rose 1.3% in May 2020—down from a gain of 2.5% in May 2019.
CoreLogic stated that U.S. unemployment remains elevated in May. Some areas of the nation are continuing to experience higher rates of job loss, which impacts rental demand and price growth.
The U.S. Department of Labor reported earlier this month that initial unemployment claims came in a 1.3 million for the week ending July 4. This is a decline of 99,000 from the week prior.
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