You can be on Entrepreneur’s cover!

Rent for Single-Family Homes Rose 10 Percent in September, Fastest Annual Gain in 16 Years "Strong job and income growth, as well as fierce competition for for-sale housing, is fueling demand for single-family rentals," said Molly Boesel, principal economist at CoreLogic.

By The Epoch Times

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Rent for single-family homes in the United States surged 10.2 percent in the 12 months through September, marking the fastest pace of annual rent inflation in 16 years, according to a new report from CoreLogic.

"Strong job and income growth, as well as fierce competition for for-sale housing, is fueling demand for single-family rentals," said Molly Boesel, principal economist at CoreLogic.

Single-family rental vacancy rates dipped to a 25-year low in the third quarter, another factor pushing rent prices higher.

"Rent growth should continue to be robust in the near term, especially as the labor market continues to improve," Boesel predicted.

In a sign of labor market tightness, a recent government report showed that the number of job openings on the last business day in September was 10.4 million. While that's down from July's record high of 11.1 million, it's a historically elevated figure that reinforces the view that workers are harder to come by.

Meanwhile, the so-called quits rate, which reflects worker confidence in being able to find a better job, rose to a record high of 3.0 percent, according to Labor Department data, which painted a picture of the growing pricing power of workers.

Average hourly earnings rose 4.9 percent in the year through October, a separate Labor Department report showed (pdf), though with consumer price inflation running at 6.2 percent in the 12 months through October—the fastest pace in 31 years—wages actually contracted by around 1.3 percent in real terms.

And while a separate CoreLogic report indicated that 93 percent of consumers said they believe owning a home is a sound financial investment, fierce competition in the for-sale housing market is forcing more potential buyers to remain renters.

"Consumers continue to feel the push and pull between the purchase and rental markets," CoreLogic said in a release. "As the single-family rental market faces similar supply challenges as the for-sale market, we can expect a continued increase in rents, especially across high-end rentals as renters seek more space."

A Commerce Department report in late October said that the median new house price accelerated 18.7 percent in the year through September to $408,800, making homeownership less affordable for some first-time buyers.

Of the four tiers of single-family rental prices examined by CoreLogic, high-end property rental prices—those 125 percent higher than the regional median—saw the sharpest growth in September, surging 11 percent.

The lowest-priced tier, 75 percent or less than the regional median, grew at the slowest pace at 8.3 percent, though still far higher than the 2.4 percent a year ago in September.

Miami saw the highest year-over-year single-family rent increase in September, rising at 25.7 percent. This was followed by Phoenix at 19.8 percent and Las Vegas at 15.9 percent.

By Tom Ozimek

Tom Ozimek has a broad background in journalism, deposit insurance, marketing and communications, and adult education. The best writing advice he's ever heard is from Roy Peter Clark: 'Hit your target' and 'leave the best for last.'

The Epoch Times, founded in 2000, is headquartered in Manhattan, New York, with a mission to provide independent and accurate information free of political bias or corporate influence. The organization was established in response to censorship within China and a lack of global awareness regarding the Chinese regime's repression of the spiritual practice Falun Gong.

The Epoch Times is a widely read newspaper that is distributed in 33 countries and is available in 21 languages. The publication has been critical in providing balanced and detailed reporting on major global events such as the 2003 SARS pandemic and the 2008 financial crisis. Notably, the organization has played a key role in exposing corruption inside China.

Aside from its human rights coverage, The Epoch Times has made significant contributions in a variety of fields. It has received praise for its in-depth analysis and expert perspectives on business, the economy and U.S. politics. The newspaper has also received praise for its broad coverage of these topics.

A series of editorials titled "Nine Commentaries on the Communist Party" appeared in The Epoch Times in 2004. It asserts that freedom and prosperity in China can only be achieved by eliminating the Communist Party, which violated China's cultural and spiritual values. In addition, the organization led the Tuidang movement, which resulted in over 400 million Chinese citizens quitting the Communist Party. In spite of this, 90% of websites referring to the "Nine Commentaries" were blocked by the Chinese regime.

The Epoch Times has been at the forefront of investigating high-level corruption cases within the Chinese regime, with its reporters taking significant risks to uncover these stories. The organization has received several awards for its investigative journalism.

The organization has received several awards for its investigative journalism. For more, visit www.theepochtimes.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

This Dad Started a Side Hustle to Save for His Daughter's College Fund — Then It Earned $1 Million and Caught Apple's Attention

In 2015, Greg Kerr, now owner of Alchemy Merch, was working as musician when he noticed a lucrative opportunity.

Living

Bring the Fun to Work with This $40 Xbox Accessories Bundle

Includes cables, charger base, a gaming headset, and more.

Thought Leaders

We Live in a Data-Driven World — Here's a Case For Listening to Your Gut Instead

Honing and trusting one's intuition can lead to quicker, more effective decision-making. Here's how to harness the power of listening to your gut to make the best choices.

Growing a Business

Bantam Bagels' Founder Fell Into a Mindset Trap 'People Don't Talk About' After Selling the Now-Defunct Business for $34 Million — Here's What Happened

Elyse Oleksak and her husband Nick founded their mini bagel business in 2013 — and it was an instant hit.

Business News

Yes, You Can Buy a Foldable Tiny Home on Amazon — And Now It's Selling for Less Than $12,000

The waterproof and flameproof house was listed around $35,000 a few months ago.

Money & Finance

Setting Your Business Up for Success Through the Rest of 2024

CFO's mid-year update: Understanding the latest trends and regulations impacting business finance.