HousingWireHousingWire
Rent growth for single-family homes ramped up at the start of 2025, according to a new report by CoreLogic. The data provider’s Single-Family Rent Index showed that rent prices jumped 2.4% during the year ending in January.
January’s rent increase is only slightly higher than December’s increase of 2.1%. It’s also slightly lower than the 2.6% growth in January 2024, according to CoreLogic.
The report also mentioned January’s historic rent-growth numbers. Prior to the COVID-19 pandemic in 2020, yearly growth for single-family rents was between 2% to 4%.
Molly Boesel, CoreLogic’s senior principal economist, said that January’s rent growth is slightly higher than what she’d expect in the opening month of the year.
“After slowing annual growth, single-family rent increases are firming up. Annual single-family rent growth in January ticked up from what may have been the cycle low point in December 2024,” Boesel said.
“Furthermore, January’s monthly increase was above what is typically recorded in the winter months, and it was the first above-trend monthly increase since mid-2024. This uptick signals renewed pressure on renters, potentially exacerbating the housing affordability crisis.”
Single-family rents for high-end luxury homes continued their upward movement from December 2024. In January, prices for high-end rentals were 3.2% higher than a year ago, compared to December’s growth of 2.6%.
Each of these numbers, however, are below the 3.5% average from 2010 to 2020. And at the the other end of the spectrum, rents for low-end homes increased by only 1.9%, which is below the increase posted by this segment in January 2024.
The luxury market as a whole is poised for success in 2025, according other experts and data providers.
Another recent report by Coldwell Banker foretold a trend of luxury market growth this year, mainly driven by increased inventory. Growing home prices and rents for luxury properties could represent greater demand for high-end listings.
CoreLogic also explored the Washington, D.C., market for rent-price growth in January. According to the report, the D.C. housing market posted the highest year-over-year increase in single-family rents at 6.4%. It was followed by Chicago (+6%). Meanwhile, Dallas (+0.3%), Miami (+1.4%) and Atlanta (+1.5%) had the lowest single-family rent growth in January.
In analyzing rent-price appreciation since 2020, Miami has seen 52% growth, followed by Washington, D.C. (+30%) and Chicago (+25%)
