US Single-Family Rent Growth Slows to 1.3% in May

On Friday, Cotality reported that US single-family rents rose 1.3% year-over-year in May, down from 2.6% a year earlier. The Single-Family Rent Index tracks rent changes nationally and across major metropolitan areas.

Rent growth was strongest in the Midwest and Northeast. Chicago led with a 4.8% annual increase, followed by Detroit at 3.5%, Philadelphia at 2.9%, and New York at 2.8%.

Growth remained weakest in parts of Texas and Florida. Among the 10 largest metros, Houston and Dallas posted annual rent declines of 0.5% and 0.2%, respectively.

Cotality Senior Principal Economist Molly Boesel said:

“The May data tells two different stories. While annual single-family rent growth remained subdued at 1.3%, rents increased 2.2% between February and May, a stronger-than-typical spring gain that signals improving momentum. When we look beneath the national average, the market is becoming increasingly fragmented. Florida accounted for more than half of the annual declines among the largest metros, while rent growth in parts of the Midwest and Northeast remained several times the national rate. Though some markets that continue to post annual declines recorded positive spring gains, suggesting local conditions are beginning to shift despite still-soft year-over-year trends.”