Last month, we reported that Phoenix led the nation in multifamily rent growth. Now, according to a recent report from CoreLogic, single-family homes are following suit as rent prices are increasing the fastest in the Southwest.
Phoenix had the highest year-over-year rent growth for the seventh consecutive month this June, with an increase of 7.1%. The Arizona capital was followed by Tucson (6.8%) and Las Vegas (5.8%), according to the report.
Overall, the nation’s single-family rents increased 2.9% year over year in June 2019, down from a 3% increase the same time last year, according to the CoreLogic Single-Family Rent Index.
“Single-family rents started climbing steadily in 2010, and during the past 12 months annual rent increases have stabilized, fluctuating between 2.9% and 3.2%,” the report said.
Notably, rent for lower-priced homes – defined by CoreLogic as properties with rents 75% or less of a region’s median rent – increased faster than those of higher-priced homes in June.
“Rents on lower-priced rental homes increased 3.6% year over year and rents for higher-priced homes, defined as properties with rents more than 125% of the regional median rent, increased 2.7% year over year,” the report said.
Miami had the lowest rent growth in June, while San Diego and Houston had the largest deceleration in rent growth.