Rents for U.S. single-family rental properties increased 3 percent year-over-year in July, up from a 2.7 percent pace a year ago, reported CoreLogic, Irvine, Calif.

CoreLogic Principal Economist Molly Boesel said low rental home inventory relative to demand is fueling single-family rent growth. Year-over-year rent price increases peaked at 4.1 percent in February 2016 and have stabilized over the last year with a 2.7 percent monthly average. Morningstar Credit Ratings, New York, said the performance of securitized single-family rental properties continues to follow seasonal trends. "Lease expirations and vacancy rates continue to increase slightly and retention rates declined as families tend to prefer moving in the summer months to avoid disrupting school attendance," Morningstar's August Single-Family Rental Research report said. 

The single-family rental market accounts for half of the U.S. rental housing stock; units in multifamily properties make up the other half. CoreLogic said rent for lower-end assets grew at a faster rate than rent for higher-end properties in July. "High-end rentals continued to dampen national rent growth in July, despite accelerating rates of increase among this tier," the report said. High-end rentals with rent prices greater than 125 percent of a region's median rent saw 2.7 percent rent year-over-year rent increases in July, up from a 1.9 percent gain a year ago. Rent prices among lower-end rentals with rent prices less than 75 percent of the regional median increased 3.9 percent in July. 

Source: The Mortgage Bankers Association