Single-Family Home Rents Post Biggest Gain in More Than 16 Years

(Bloomberg) -- Rent for single-family homes in the U.S. surged 8.5% in July, the biggest increase since 2005.

The Phoenix metropolitan area led U.S. cities with an 18.9% year-over-year gain, according to a report Tuesday by CoreLogic Inc. Miami (17%) and Las Vegas (14.3%) also saw big jumps.

Single-family rents have jumped amid a lack of affordable properties to buy. With little inventory available for first-time buyers, Americans looking for backyards and extra rooms have been pushed into the rental market.

There is little sign that the inflation will ease in coming months, a potential issue as eviction moratoriums that have protected renters during the pandemic expire, according to Molly Boesel, principal economist at CoreLogic.

“Affordability challenges may begin to pose a more urgent concern for renters,” she said.

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