The National Association of Home Builders is reporting that their Real Rent Index (RRI) declined by ~0.1% in June. The first decline in the RRI since 2013. The annual growth rate dropped to a negative 1.4% in June, this after posting positive growth for three months at rates of between 4%-8%. The RRI decreased in June because rent inflation slowed while Core CPI grew by 0.2%. This is the first month Core CPI grew since February 2020. The decline in the real rent index is likely related to the negative impact of the coronavirus on rental housing demand. Fallout from the virus has put downward pressure on demand in many sectors of the economy, including rental markets.
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Real Rent Index Declined in June