The average single-family monthly rent rose to $2,357 year over year in 2024, while annual rent growth in the sector slowed to just under 0.8% — the smallest increase in years, following 7.1% YOY growth in 2022 and 4% YOY growth in 2023, according to Rentometer’s latest single-family rentals report.
The study, which focused on three-bedroom single-family homes priced between $500 and $10,000 per month across 857 U.S. cities, found that rents rose fastest in the Midwest, which recorded 5.26% growth over this period, followed by the Northeast at 4.24%. From there, growth dropped to more subdued levels in the Pacific (2.12%), Rocky Mountain (1.75%) and Southeast regions (0.62%). The Southwest was the only region to record a decline at -0.09%.
At the national level, single-family vacancies rose to 6% of stock in the third quarter of 2024, according to the report. This is the highest vacancy rate recorded since 2018; the rate has fluctuated between approximately 5% and 6% during this period.
Size and shape
Approximately 24,000 new single-family build-to-rent units were started in the third quarter of 2024, according to the U.S. Census Bureau. Over 92,000 units began construction over the past four quarters, up 31% from the previous four quarters, according to the National Association of Home Builders.
This concentration of BTR starts — a number that has grown exponentially over the last several years — has had the strongest influence on the Sun Belt, contributing to that market’s declining single-family rents, according to Rentometer. Out of the top 10 large cities with the sharpest annual rent declines, eight are in the Sun Belt, led by Austin, Texas, at -4.3% and San Laredo, Texas, at -3.8%.
Large U.S. cities with the sharpest single-family rent declines in 2024
| City | Annual single-family rent decline |
|---|---|
| 1. Austin, Texas | -4.3% |
| 2. Laredo, Texas | -3.8% |
| 3. Plano, Texas | -3.1% |
| 4. San Antonio, Texas | -2.5% |
| 5. Chandler, Arizona | -2.1% |
| 6. St. Petersburg, Florida | -1.9% |
| 7. Jersey City, New Jersey | -1.4% |
| 8. Phoenix | -1.2% |
| 9. San Francisco | -1.2% |
| 10. Tampa, Florida | -1.1% |
SOURCE: Rentometer
Conversely, the markets with the strongest rent growth are in the Northeast. Buffalo, New York, had the strongest YOY growth at 10.9%, followed by Virginia Beach, Virginia, at 10.4%.
Cities in California made up eight out of the top 10 large cities with the highest average single-family rents, according to the report. San Francisco led the list at $5,265 per month, while Boston and Miami were the only non-California cities in the top 10, at No. 6 and No. 10, respectively. (Rentometer noted the report does not include single-family rentals in New York City.)
Most expensive large U.S. cities for single-family rentals
| City | Average single-family rent |
|---|---|
| 1. San Francisco | $5,265 |
| 2. Los Angeles | $5,082 |
| 3. Irvine, California | $5,079 |
| 4. San Diego | $4,618 |
| 5. Santa Ana, California | $4,212 |
| 6. Boston | $4,161 |
| 7. Long Beach, California | $4,160 |
| 8. Anaheim, California | $4,158 |
| 9. San Jose, California | $4,148 |
| 10. Miami | $3,996 |
SOURCE: Rentometer
Cambridge, Massachusetts, topped the list for mid-sized city average rents at $5,687, while Newport Beach, California, was highest out of the small cities and in the study overall at $7,316 per month.
The Federal Trade Commission is presently considering a study of large single-family rental home investors and their impact on home prices and rents across the country. If enacted, the commission would seek information from more than 30 companies about their corporate structure, housing inventory, income, business plans, growth plan, competition, prices and expenses.
