CoreLogic's Sam Khater takes a look at the shadow market of single-family rentals, where rent growth has, as in the broader conventional market, begun to decelerate.
Single-family rents were up 3.3% year over year in May, a 1.2% decrease since the peak reached in December 2014. And the higher end of the market is where the bulk of this deceleration is being seen, as lower-end properties continue to perform well.
Among the 10 largest selected markets the index tracks, Los Angeles had the highest rent growth, with a 5.4 percent growth rate from a year ago (Figure 3). It’s closely followed by Atlanta (4.8 percent), San Diego (4.8 percent) and Dallas (4.8 percent). The top 6 markets for rent growth are either in the south or west and they are exhibiting stable rent growth.
Rents have decelerated the most over the last year in Houston and Miami, where the high end is impacted by oil and currency price swings.