Before COVID-19, lease increase had stabilized at an annual common of 3%, in line with CoreLogic data.
The annualized boom in lease slowed to 1.7%, the smallest benefit in almost a decade, down from 2.9% a yr ago, in line with the CoreLogic Single-Family Rent Index. Single-family lease increase slowed in May.
“Single-family rent growth slowed abruptly in May as the nation felt the full impact of the economic crisis caused by the pandemic,” said Molly Boesel, principal economist at CoreLogic.
“Some metro areas, especially those that depend on tourism, were hit hardest by job losses,” Boesel said. “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.”
in the 18th straight month, Phoenix had the biggest year-over-year rent price rise with a boost of 6 percent. Tucson, Arizona, had the second-largest rise in home rates in May, at 3.5%.
Honolulu has been the only area that saw a fall in rent rates, with a fall of 0.4%.
Low-end rental rates were up 2.8 percent relative to the 1.3 percent increase in higher-priced renting, according to the survey.
Lower-priced housing, described as renting at 75% or lower than the national average, saw annualized rent increases of 2.8%, down from 3.5% a year earlier. Lower-medium priced units, renting from 75% to 100% of the provincial median, posted an annualized gain of 1.9%, down from 3.1%.
Higher-medium-priced homes renting around 100% to 125% of the national median had such an annual average gain of 1.6%, down from 8% a year.