For the first half of 2018, on average, single-family rent prices have increased 2.8 percent year-over-year for the first six months of 2018 in the top 20 metros in the U.S.
CoreLogic’s Single-Family Rent Index increased 4.1 percent, which is the cumulative increase for the first half of 2018, in the top 20 metros. Philadelphia was one of the metros included in the study, and saw slightly lower increases in rent compared to the national average.
From January through March, the national single-family, year-to-year rent change was 2.7 percent, but never rose above 1 percent in Philadelphia. In April and May, that number increased nationally to 2.9 percent, and Philadelphia saw a larger increase of 1.9 percent and 2.2 percent. In June, single-family year-to-year rent changes were up 3 percent, compared to 2.4 percent in Philadelphia.
Luxury rentals saw an even bigger increase. Rents grew 4.2 percent in the first half of 2018 and 2.8 percent over the last year. Low-end rentals, which are categorized as having a rent cost 75 percent lower than the regional medium, increased 3.4 percent since January and 3.9 percent over the year.
“Single-family rentals make up one-half of all residential rentals but are an overlooked segment of the housing market. Much like the rest of the housing market, single family rentals are affected by market forces and fell rapidly during the Great Recession. They have since bounced back strongly from their low point in 2010, mirroring house price growth,” said Molly Boesel, the principal economist at CoreLogic.
Across the largest cities, Las Vegas had the biggest year-over-year rent increase, growing 4.8 percent over the year.