As a landlord, one of your biggest fears is having a property that sits empty for weeks or even months. Every day that rolls by marks another dip in your bank account. That said, the last thing you want to do is rush in a new tenant only to discover they’re stuck in a financial quagmire or have a long history of trashing homes and failing to pay rent. Plus, losing a tenant (even if you’re ready for them to go) brings its own slew of budget-busting costs beyond lost rent, including marketing and administration fees, screening costs and potential maintenance or required upgrades.
US SINGLE-FAMILY RENTS UP 3.1 PERCENT YEAR OVER YEAR IN DECEMBER
- Rents increased 3 percent for the full year 2018.
- High-end segment rent growth accelerated and low-end segment decelerated in December 2018 compared with December 2017.
- Houston had the slowest annual rent increase of the 20 analyzed areas in December.
U.S. single-family rents increased 3.1 percent year over year in December 2018, up from a 2.9 percent increase in December 2017, according to the CoreLogic Single-Family Rental Index (SFRI). The index measures rent changes among single-family rental homes, including condominiums, using a repeat-rent analysis to measure the same rental properties over time. Single-family rents climbed steadily between 2010 and 2018. Annual rent increases have stabilized, fluctuating between 2.7 and 3.2 percent for the past 12 months. Rent increases averaged 3 percent for full year 2018, a pick up from 2.7 percent in 2017.
US SINGLE-FAMILY RENTS UP 2.9 PERCENT YEAR OVER YEAR IN NOVEMBER
- High-end segment rent growth accelerated and low-end segment decelerated in November 2018 compared with November 2017.
- Seattle rents decreased in November.
The key to comprehensive evaluation of risk is thorough evaluation of the resident, property and portfolio. Unlike rules or judgment based tools or methodologies, CoreLogic® scoring and analytics tools give a forward- looking view of many key factors that impact future resident, property and performance—including the likelihood of residents paying rent on time and honoring their lease obligations.
While some consumers might question the safety of investing in real estate, purchasing rental property is traditionally a fortuitous opportunity and long-term investment for buyers and property owners. And, for those willing to take the plunge, there are several highly sought-after markets throughout the country that may offer strong and sound real estate investments—either through a traditional home purchase or buying a rental property.
New Single-Family Rental Index from CoreLogic Shows Slower Single-Family Rent Growth
Given the growing role that rental properties are playing in real estate, CoreLogic has developed a new Single-Family Rental Index (SFRI) to measure the changing rent dynamics of single-family rental properties. The index, which uses a methodology similar to our own CoreLogic Home Price Index (HPI), as well as the CoreLogic Case-Shiller Index, measures changes in rents by comparing repeat leases on the same single-family properties. The index allows us to track the changes in rents while controlling for the mix and quality of single-family rental properties, which is a very important and unique feature of the index.
Nationally and at the Metro Level, Google Searches Correlate with Rental Prices
In Part I of this blog we discussed how Google Trends1 can provide insights into rental prices at the national level. Here we focus on the correlation between Google Trends and real rental prices for a few large metros. As with the national level analysis, structural time series models were used to extract the long-term trends from Google search interests, and real rental prices-per-square-foot were normalized to get real rental price appreciation since January 2012. Read More
National Average Rental Prices Unlikely to Fall This Summer
In a white paper published in 2009, Google claimed that Google Trends is able to help in predicting the present, in the sense that search volume data may be correlated with the current level of economic activity1. A growing number of academic studies have demonstrated that Google Trends can provide insights into home prices and Consumer Sentiment Index2, 3. Using CoreLogic rental price data4 and Google Trends for the category “Apartment & Residential Rentals,” a new analysis from CoreLogic shows a strong correlation between Google search interest and real rental prices (dollar per square foot)5. Read More