Single-family rent prices in the U.S. managed to rise in May 2020; however, the price growth rate is the slowest recorded since July 2010, the latest report said.
According to the CoreLogic Single-Family Rent Index (SFRI), single-family rents rose 1.7 percent. The report noted that rental demand continues to reel from the impact of unprecedented unemployment rates and the directive to stay at home.
The rent price growth was generally lifted by lower-priced rentals--rental properties priced lower than 75 percent of the regional median--which has been the trend since April 2014, the report said. However, the combined rent growth of lower-priced and higher-priced rentals was slower in May.
Lower-priced rental grew 2.8 percent year-over-year, a decline from 3.5 percent recorded in May 2019. On the other hand, higher-priced rentals--rental properties priced greater than 125 percent of median rent in a particular region--rose 1.3 percent in May 2020. In comparison, higher-priced rentals were up 2.5 percent in May 2019.
In May, Phoenix recorded the highest rent growth from the same period last year with a 6 percent increase. Tucson (up 3.5 percent), Charlotte (up 2.9 percent), follows Phoenix among the 20 large metropolitan areas in terms of rent price growth.
Honolulu was the only metro to record a decline in rent price year-over-year, which dropped 0.4 percent. Meanwhile, St. Louis posted the largest year-over-year gap in rent growth, which was lower by 3.8 percent compared to its May 2019 level.
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Meanwhile, the Zumper National Rent Report for July 2020 revealed that the national one- and two-bedroom units for rent recorded growth of 0.4 percent from the same period last year, as the moving season started picking up again. One-bedroom rent rose 1 percent to a median rent of $1,229 while two-bedroom rent price grew 0.8 percent to $1,485.
A majority of the top ten most expensive markets are still seeing rent prices spiraling down as the pandemic continues to linger, and demand shifts to less expensive nearby areas. San Francisco's one-bedroom rent record the largest decline nationally as it posted a double-digit decrease of 11.8 percent year-over-year, beating last month's largest decline. Month-over-month, the one- and two-bedroom rent dropped 2.4 percent to $3,280 and 1.8 percent to $4,340, respectively.
New York City also saw rent prices on all fronts declining as well as one-bedroom rent dropped two percent to $2,890, and two-bedroom rent fell 0.3 percent to $3,210 - which is also five percent down from one year ago.
One-bedroom rent in Boston declined retreated 1.6 percent to $2,410, but the two-bedroom rent remained flat at $2,900. Oakland, which moved a spot higher among the most expensive cities, recorded rent price decline for one-bedroom units of 2.1 percent to $2,300 while two-bedroom rent is flat at $2,850.
Lastly, San Jose, CA, which dropped in the ranking to tie with Oakland as the 4th most expensive city, saw its one-bedroom rent price falling five percent while the two-bedroom rent price dropped 3.1 percent to $2,860.
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