The number of single-family rentals is growing, and landlords continue to accrue high profits from their investments. Single-family rents rose 2.9% year over year in June, according to CoreLogic’s Single-Family Rent Index, which measures rent changes among single-family rental homes, including condos.
Phoenix continues to outpace many other large metros for single-family rent increases. Year-over-year rent growth in its single-family rental market grew by 7.1% in June, followed by Tucson, Ariz., at 6.8% and Las Vegas at 5.8%. Miami had the lowest rent growth in June, increasing by just 1.1% over the past year, according to CoreLogic’s analysis. San Diego and Houston also saw some of the largest decelerations in rent growth in June, falling by 2.5 percentage points and 2.4 percentage points, respectively.
Low-end rentals—properties with rents that are 75% or less of a region’s median rent—are seeing the highest growth. Rents on such homes grew 3.6% year over year while rents for higher-priced homes—properties with rents more than 125% of the region’s median rent—rose 2.7% over the past year, according to CoreLogic.
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