Rent prices in southwestern states continue to soar to unprecedented heights, according to new CoreLogic data released Tuesday.

The cost of renting a single-family home increased by 2.9 percent nationwide and by 8 percent in Phoenix in February, according to the new analysis.

The average single-family home now rents for $1,430. While prices rose by only 2 percentage points since the same time last year, some pockets of the country have been experiencing drastic changes. At 8 percent growth, Phoenix had by far the highest growth in the US. But Las Vegas and Tucson followed close behind, at 7.1 percent and 6.5 percent, respectively.

According to CoreLogic, lack of inventory was the main reason behind such high growth. Limited new construction and low rental vacancies create steep compensation for the few affordable rental properties available in those metro areas.

Courtesy of CoreLogic

“As with the for-sale market, supply of single-family rentals saw very low levels in February, putting upward pressure on the cost of both for-sale and for-rent homes,” CoreLogic Principal Economist Molly Boesel, said in a prepared statement. “Phoenix had rapid rent increases in February with only 1.9 months of single-family rentals available.”

Low-rental homes, which are classified as properties whose rent costs less than 75 percent of the regional median, have been driving the increases across the country. They grew at the highest rate, by 3.7 percent, since February 2018.

Courtesy of CoreLogic

As with rising home values, rent prices reflect certain trends across the country. As cities like Phoenix and Las Vegas attract new residents, subsequently creating job opportunities, housing is not getting built fast enough to meet demand. As a result, people are pushed to pay more for the few available homes on the market.

“Metro areas with limited new construction, low rental vacancies and strong local economies that attract new employees tend to have stronger rent growth,” reads CoreLogic’s report.

Email Veronika Bondarenko

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×