Rent prices report slowest growth since 2010, according to a recent DSnews report. CoreLogic’s Single-Family Rent Index revealed that single-family rents rose roughly 1.5% annually in May 2020, which is the lowest growth since July 2010. CoreLogic concluded that rental demand is still impacted by the high unemployment rates and stay at home orders, even though the economy is starting to slowly reopen. CoreLogic studied rent prices in 20 metros across the country. Phoenix had the highest year over year growth in May. Other notable cities include Tucson and Charlotte. Honolulu was the only metro to experience an annual decline in rent prices, falling .4%.
WHAT ELSE DID THE REPORT SAY?
The article stated that U.S. unemployment remained elevated in May. Many regions across the nation are still experiencing higher rates of job loss, which impacts rental demand and price growth. Detroit reported a 19.9% decline in employment due to COVID-19, which caused rent price growth to remain stagnant in May. The CoreLogic report stated, “Meanwhile, Phoenix’s employment declines were relatively minimal in May, where rent growth remained strong. As regions like Florida, Texas, and Arizona grapple with a resurgence of COVID-19 cases, we may expect to see a more significant impact to rent prices on the local level”. The U.S. Department of Labor recently reported that there were 1.3 million initial unemployment claims for the week ending July 4. This is 99,000 less than the prior week.
Click here to read the full DSnews report and learn more.
ARE YOU READY TO FIND YOUR DREAM HOME?
Contact us today to get started!