Home rental cost increases are slowing with the pandemic

The pandemic is slowing the rate of single-family home rent increases across the country.

Nationwide average rental rates on single-family homes were up only by 1.7% year-over-year in May, according to a new report by Corelogic.

That’s the smallest home rental rate increase in almost a decade.

“Single-family rent growth slowed abruptly in May as the nation felt the full impact of the economic crisis caused by the pandemic,” Molly Boesel, principal economist at Corelogic, said in the new report. “Some metro areas, especially those that depend on tourism, were hit hardest by job losses.

“With unemployment rates predicted to remain high through the end of the year, we can expect to see further easing in rent growth as the economy struggles this year.”

Looking at major U.S. markets, metro areas including Honolulu, Detroit and St. Louis saw either slight declines in home rents or no increases.

The biggest gain was in Phoenix where home rents were 6% higher than in May 2019.

In the Dallas area, home rentals rates were just 2% higher than a year earlier, Corelogic bound. Home rent increases a year ago were almost 3% nationwide and in D-FW.

Rents for single-family homes were 2.4% higher in Austin and 1.3% greater in Houston than a year earlier.

The rise in North Texas home rental rates while down from a year ago is still higher than apartment rent increases in the area.

Dallas-fort Worth apartment rents at mid-year were unchanged from 2019 levels, according to the latest data from Realpage.