Single Family Rent Prices Stabilized in the U.S for The First Time 

According to the CoreLogic’s Single-Family Rent Index, or known briefly as SFRI:

They updated the index for the prices of those back in July of this year. What they found was that there was an increase in the rental prices by about 1.7% from the previous years, this time around the prices actually dropped by about 2.9% since July 2019. 

The reason for this is simple: it’s because of the effects of the COVID-19 pandemic that stirred up the real estate markets: 

 
Specifically the rental markets really good. Because of the impact that COVID-19 did on many homes and families, causing unemployment rates to rise, it became much harder for landlords and renters to add some additional money in their pockets and making the ends meet. In fact, many landlords had to lower their rates significantly all in the hopes of keeping their tenants as well as their own local economies rather stable.  

During the early portion of this year, the rent rates were slowly increasing by about an average of 2.9 to about 1.7% in May. Around June, it dropped to 1.4%, while in July, the rental rate was stable in terms of its overall growth as local economies began to reopen bit by bit. Despite these efforts, those involved in the rental markets have continued to accommodate the needs of those that need a home or roof over their heads, making more security and safety measures than ever before.  

This caused a slow growth rate to occur. 

In order to better understand this, CoreLogic categorizes the rental markets by four tiers, all based on a certain price range given to them. In this case, they examined each of the four tiers: lower-priced, lower middle, higher middle, and higher-priced and their growth rates that occurred in this year. Based on what they found, here was the following: 

• Lower-priced went down from 3.9% to 2.6% 
  
• Lower middle-priced went down from 3.1% to 1.8% 
  
• Higher-middle priced went down from 2.8% to 1.7% 
  

• Higher priced went down from 2.5% to 1.4% 
  

Since July, the unemployment rates were remaining elevated throughout the United States, and in some areas, there has been a continued increase in job loss, causing a downward spiral as well as pressure among the rental market and those involved. However, they remain optimistic as the economy is slowly making its way back up to where it once stood before the COVID-19 crisis. 
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