Written by: Internal Analysis & Opinion Writers
The U.S. single-family rental market regained some momentum during the summer, but the latest data shows that higher-priced homes are driving much of the improvement while rent growth at the more affordable end of the market remains subdued.
Single-family rents increased 0.4% in July from the previous month and were 1.8% higher than they were one year earlier, according to Cotality's latest Single-Family Rent Index. While the annual increase indicates that rents are still moving higher nationally, growth remains below both historical averages and the 2.3% annual increase recorded in July 2025.
The most noticeable difference is emerging between rental price categories. Higher-priced single-family homes experienced annual rent growth of 2.6% in July, while rents for lower-priced properties increased only 0.6%.
Cotality defines lower-priced rentals as properties with rents no greater than 75% of a metropolitan area's median rent. Higher-priced rentals are those commanding rents of at least 125% of the area's median. The widening difference between the two categories suggests that renters at opposite ends of the market are experiencing significantly different conditions.
Molly Boesel, senior principal economist at Cotality, cautioned that the recent strength of higher-priced rentals should be considered in the context of longer-term trends. Lower-priced rentals have actually experienced greater cumulative rent increases over the past five years, meaning the latest gains among premium properties could represent some degree of catching up.
Over the past five years, rents for lower-priced single-family homes have increased approximately 26%, compared with about 24% for higher-priced rentals. That longer-term comparison shows why slower growth at the lower end of the market does not necessarily mean affordable rentals have become easier for households to manage.
Instead, renters seeking less expensive homes are already dealing with the effects of several years of substantial increases. With household budgets stretched by higher costs for housing, insurance, food, utilities, and other necessities, landlords may have less ability to raise rents aggressively at the lower end of the market.
Rent growth also varied slightly according to property type. Detached single-family homes recorded annual growth of 1.9% in July, while attached properties increased 1.7%. Although the difference was small, detached homes continued to show somewhat stronger rental performance.
Location played an even larger role.
Chicago recorded the strongest annual rent growth among 10 major metropolitan areas highlighted in the report, with single-family rents increasing 5% from a year earlier. Detroit followed with growth of 3.7%, while Philadelphia recorded a 3.5% increase. New York rents rose 3.3%.
The results demonstrate a continuing shift in rental performance toward several Midwest and Northeast markets, while parts of the South that experienced exceptionally strong housing demand earlier in the decade are now seeing much slower growth.
Miami recorded annual rent growth of 1.2%, while Washington, D.C., and Dallas each posted increases of just 0.6%. Houston was nearly flat, with rents rising only 0.2%.
Florida stood out for another reason. Among the nation's 50 largest metropolitan housing markets, only four experienced year-over-year declines in single-family rents during the period, and all four were located in Florida. The results illustrate how dramatically rental conditions can vary even as national rents continue moving higher.
The latest figures also highlight a changing housing environment for renters and property owners. During the pandemic and its immediate aftermath, rapid migration, limited housing supply, and strong demand produced unusually large rent increases in many metropolitan areas. As those conditions have normalized, rent growth has slowed considerably.
Even so, the single-family rental sector continues to benefit from affordability challenges in the for-sale housing market. Elevated home prices and mortgage rates have made purchasing a home difficult for many households, leaving some families renting single-family properties for longer periods than they originally anticipated.
For renters, slower national rent growth offers some relief compared with the dramatic increases experienced earlier in the decade. However, the market remains highly dependent on location and price point. A renter searching for an affordable home in Chicago may face very different conditions from someone looking for a premium property in Florida.
Ultimately, July's data shows that the single-family rental market is not moving in one uniform direction. National rent growth remains modest, but higher-priced properties are gaining faster than lower-priced homes, and regional differences continue to widen. For renters, landlords, and housing professionals, understanding those local and price-tier differences has become increasingly important as the rental market settles into a more normalized—but highly uneven—period of growth.
