Single-Family Rent Price Triples

“Single-family rent growth hit its sixth consecutive record high in October 2021, mirroring record price increases in the for-sale housing market,” said Molly Boesel, principal economist at CoreLogic. Rent growth in October 2020 had already recovered from pre-pandemic lows and rent growth this October was more than three times that of a year earlier, per CoreLogic.

“October 2021 data shows a national rent increase of 10.9% year over year, up from a 3.2% year-over-year increase in October 2020.”

In the local Naperville and Chicago suburban market, there have been very low levels of rentals available. The low number of available rentals has led to increased competition among renters. As a result, rental prices increased as well. As such, it has not been uncommon for some renters to offer to pay above the listed rent each month or even pay months in advance.

Additionally, as the housing market for homebuyers remained competitive through 2021 (as it was in 2020). Some buyers needing housing – who didn’t find a home to purchase – turned to renting as well.

The Good News, On a Local Level

In the Chicago-Naperville-Arlington Heights area, per CoreLogic, the October 2021 year-over-year single-family rent change was 4.2%. The median single-family rent in September 2021 was $2,031.

A 4.2% rent change is much lower than other areas, including Miami-Miami Beach-Kendall, which experienced a 29.7% single-family home rent change year-over-year October 2021.

The next highest was Phoenix-Mesa-Scottsdale, which was at 19.7%.

With rising rental prices for single-family homes, you may pay less each month to buy than if you rent.

Contact The Glockler Group to discuss more. (708) 480-2011