HousingWireHousingWire
Annual rent growth for single-family homes remained sluggish in December 2024, with prices rising 1.8% year over year, according to the newest Single-Family Rent Index from CoreLogic.
While this marks a slight uptick from November’s 1.5% growth rate — the lowest in 14 years — it is still below the 2.5% increase recorded in December 2023.
The modest gains reflect a continuing slowdown in the rental housing market, which has struggled to regain momentum after surging demand in previous years.
Since February 2020, single-family rents have climbed 30%, with some markets — particularly in Florida — seeing even steeper increases. Miami, for instance, has experienced a staggering 52% jump over the past four years, CoreLogic added.
“Single-family rent growth averaged 2.6% in 2024, below the 2010-2020 average of 3.5% when rents were growing at a fairly steady rate. Growth was frontloaded and slowed throughout the year,” CoreLogic senior principal economist Molly Boesel said in a statement. “Though increases were moderate, rents continue to increase, with an average increase of about $100 per year for the past five years.”
Higher-end rental properties saw the most significant gains in December, with prices rising 2.4% year over year, up from 2.2% in December 2023. By comparison, rents for lower-priced homes increased by 1.7%, a notable deceleration from the 2.8% growth seen a year prior.
The gap between high- and low-end rental price growth highlights an ongoing trend: Demand for luxury rentals remains stronger than for entry-level homes, which are more vulnerable to economic fluctuations and affordability constraints.
Rent growth varied significantly by region in December. Washington, D.C., posted the highest year-over-year increase at 5.6%, followed closely by Detroit (+5.5%) and Chicago (+5.1%).
On the other end of the spectrum, Dallas saw the weakest growth, with rents rising only 0.4% year over year. Atlanta followed at 0.7% growth, while Miami — despite its long-term surge — posted the third-lowest growth rate in December at 1.3%.
Month over month, rent prices declined by 0.7% in December, reflecting a seasonal dip that was sharper than historic averages. Between 2004 and 2019, the typical December decline was 0.4%, making this the fifth consecutive month of below-trend seasonal growth.
Despite these fluctuations, rents for both detached and attached single-family homes grew at a nearly identical pace of 1.7% and 1.8% year over year, respectively.
