Multifamily rents remain high in an industry of underwater mortgages just beginning to dry out, according to CoreLogic’s December MarketPulse report.
Multifamily rentals dropped year-over-year in 2008 and 2009, but recovered faster and stronger than single-family rentals. January 2010 was the first year-over-year decline in pre-foreclosure filings, which kept more homeowners out of the single-family rental market.
“While neither rental class dropped as significantly as the bursting housing bubble, the single-family rental market is more of a draw to foreclosed homeowners who brought their volatile circumstances to market,” said senior research analyst Aurora Bristor of CoreLogic.
The uptick in rental income year-over-year reflects how affordable rental properties became for investors and ongoing demand for rentals in the wake of the housing market crash.
Although CoreLogic Home Price Index posted year-over-year housing price gains since the start of 2012, multifamily rentals have been rising since early 2010, “leading the housing recovery in duration and strength.”