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Single-family home rent growth slows for fifth straight month in September

Rent remained 10.2% above September 2021 levels and 22.6% from two years earlier, according to the Single-Family Rent Index from real estate data reporting firm CoreLogic.

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Rent prices showed continued signs of slowing in September, with single-family rent prices slowing for the fifth consecutive month, according to a new report released Tuesday.

Rents remained up 10.2% in September from a year earlier and 22.6% from two years earlier, according to the data firm’s Single-Family Rent Index. CoreLogic real estate. That’s down from the 13.9% increase recorded in April.

Annual rent growth remained well above pre-pandemic levels, but September’s slowdown could be another indication that the rental market is returning to historic and seasonal norms, said CoreLogic senior economist Molly Boesel.

“Annual single-family rent growth slowed for the fifth consecutive month in September, but remained at more than double the pre-pandemic growth rate,” Moesel said in a statement.

“The monthly change in rents was negative in September, returning to the typical pattern for the first time since 2019, which could signal the start of normalization in rental price growth,” Boesel added.

While Tuesday’s report indicated a slowdown in single-family rent prices, it followed an October report that said demand for apartments fell in the third quarter for the first time in 30 years of tracking and at a time when demand for new leases is generally high before slowing down in the last three months of the year.

Economists are watching price data through the fall and winter to see if the rental market is indeed returning to normal after a nearly two-year period of monthly rent gains.

Spring and summer are generally the busiest rental months, i.e. when prices increase before decreasing towards the end of the year, economists said.

The CoreLogic report found that September growth was slightly lower than September 2021.

Rent has risen fastest year over year for low-priced homes, or those that are 75% or less than the median. The cost of renting low-cost homes rose 12.1% nationally in September from a year ago.

The price of the most expensive homes, or those that are 125% or more than the regional median price, rose the slowest at 8.9%.

Miami has consistently led the way with the largest year-over-year increase in the cost of rent. Single-family homes were rented 20.1% more in September than a year earlier.

“Prices for single-family rentals rose 10.7% year-over-year in September, compared to 9.3% for single rentals,” Boesel added. “However, price growth for detached rentals still outpaces that of townhouses on a two-year basis.”

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