Multifamily rents remain high in an industry of underwater mortgages just beginning to dry out, according to CoreLogic’s December MarketPulse report.
Multifamily rentals dropped year-over-year in 2008 and 2009, but recovered faster and stronger than single-family rentals. January 2010 was the first year-over-year decline in pre-foreclosure filings, which kept more homeowners out of the single-family rental market.
“While neither rental class dropped as significantly as the bursting housing bubble, the single-family rental market is more of a draw to foreclosed homeowners who brought their volatile circumstances to market,” said senior research analyst Aurora Bristor of CoreLogic.
The uptick in rental income year-over-year reflects how affordable rental properties became for investors and ongoing demand for rentals in the wake of the housing market crash.
Although CoreLogic Home Price Index posted year-over-year housing price gains since the start of 2012, multifamily rentals have been rising since early 2010, “leading the housing recovery in duration and strength.”
Click on the graph to view year-over-year rent increases.