Nationwide, monthly rent for single-family homes grew by 3 percent in August, down modestly from 3.1 percent during the same period last year. According to RentCafe, this puts the average national rent at $1,472 a month.
“National rent increases have settled in around 3 percent over the past year, and the rate of increase for entry-level rentals has eased over the past six months,” Molly Boesel, principal economist at CoreLogic, said in a statement. “However, home-buying affordability remains a top concern across generations and is keeping many consumers in the rental market.”
After peaking at 4.2 percent growth in February 2016, rent prices have stabilized somewhat over the past three years and rarely rise or fall by more than a few percentage points.
Nonetheless, Phoenix, where construction has not been able to keep up with the rapid growth of the job market, experienced its ninth consecutive month of 6.6 percent growth. Las Vegas and Tucson, Arizona, trailed Phoenix at 5.8 and 5.3 percent growth, respectively.
Rent growth also tends to be more drastic for affordable properties. Rent for properties that commanded less than 75 percent of the regional median rate increased 3.7 percent year-over-year while rentals asking greater than 125 percent of a region’s median grew by just 2.7 percent, according to the CoreLogic analysis.
“If this trend continues, we may see another uptick in rent price growth in the coming year, particularly in urban areas where we’re seeing increasing demand from millennials,” Boesel said.