Key Rental Housing Data Release Summary for March 2024

Looking for a place where all the key rental housing data releases from the month are summarized in one place? You found it!

Monthly Releases: Economic Indicators

Consumer Price Index

Bureau of Labor Statistics | Press Release | March 12, 2024

Headline: Consumer prices rose 0.4% in February and 3.2% from a year ago (CNBC)

Key Takeaways:

• The index excluding Food & Energy (“Core Inflation”) increased 3.8% over the last 12 months, after increasing 3.9% in the 12 months ending in January.
• The All Item CPI increased 3.2% for the 12 months ending in February, more than the 3.1% increase in the 12 months ending in January.
• “Excluding volatile food and energy prices, the core CPI rose 0.4% on the month and was up 3.8% on the year. Both were one-tenth of a percentage point higher than forecast.” (CNBC)

Small Business Optimism Index

National Federation of Independent Business | Report | March 12, 2024

Key Takeaways:

• The Small Business Optimism Index decreased by half a point in February to 89.4, after decreasing 2 points in January.
• 37% of all owners reported job openings they could not fill in the current period, down 2 points from January and the lowest reading since January 2021.
• “In February, 39% of Small Business Owners expected ‘worse’ conditions in six months, only 7% expected ‘better.’” (NFIB)

Employment Situation Summary

Bureau of Labor Statistics | Press Release | March 8, 2024

Headline: U.S. job growth totaled 275,000 in February but unemployment rate rose to 3.9% (CNBC)

Key Takeaways:

• Total nonfarm payroll employment increased by 275,000 in February, after increasing 353,000 in January, ending a streak of four consecutive months of increasing numbers.
• The unemployment rate increased to 3.9% in February, up from 3.7% in January.
• Employment in the transportation and warehousing industry is down by 144,000 since reaching a peak in July 2022.
• “Job creation topped expectations in February, but the unemployment rate moved higher and employment growth from the previous two months wasn’t nearly as hot as initially reported.” January was revised down to 229,000 from 353,000, and December was revised down to 290,000 from 333,000. (CNBC)

Consumer Sentiment

University of Michigan | Press Release | March 28, 2024

Key Takeaways per Joanne Hsu, Survey Director: 

• Consumer sentiment saw a marginal decrease of 0.4 index points from the previous month – well within the margin of error.
• Sentiment remained almost 25% above November 2023 and is currently halfway between the historic low reached during the peak of inflation in June 2022 and pre-pandemic readings.
• Year-ahead inflation was unchanged from February at 3.0%. For the third straight month, short-run inflation expectations have fallen within the 2.3-3.0% range seen in 2018 and 2019.

Consumer Spending

Bureau of Economic Analysis | Press Release | March 29, 2024

Headline: US inflation moderating; consumer spending underpinning economy (Reuters)

Key Takeaways

• Core PCE Index, excluding food and energy:
  • +0.3% MoM (January: +0.5% MoM)
  • +2.8% YoY (January: +2.9% YoY ) << this is a key metric tracked by the Fed 
• The Overall PCE Price Index increased 0.3% MoM and increased 2.5% YoY
• “U.S. prices moderated in February, with the cost of services outside housing and energy slowing significantly, keeping a June interest rate cut from the Federal Reserve on the table.” (Reuters)

Monthly Releases: Housing and SFR Data

Single-Family Rent Index

CoreLogic | Press Release | March 22, 2024

Key Takeaways:

• U.S. single-family rent growth increased by 2.6% YoY in January, after increasing 2.8% YoY in December and increasing 5.5% YoY in January 2023.
• U.S. Rent growth both annually and monthly has not been in double digits since the fall of 2022.
• Honolulu (6%) and Seattle (5.2%) posted the highest YoY increases, while four metros posted annual rental price decreases: Miami (-2.4%), Austin (-2.3%), New Orleans (-1%), and Minneapolis (-0.9%).

Case-Shiller Home Price Index

S&P CoreLogic | Press Release | March 26, 2024

Key Takeaways:

• The National Price Index reported a 6% annual change in January, after reporting a 5.5% annual change in December.
• The 6% annual change is the fastest annual rate since 2022.

February Rental Report

Realtor.com | Press Release | March 26, 2024

Key Takeaways:

• February marks the seventh month of YoY rent decline in a row for 0-2 bedroom properties at -0.4%, after a -0.3% decline in January.

• Despite the seven months of decline, the U.S. median rent was just $50 (-2.8%) less than the peak seen in August 2022.

• ​​In February 2024, the cost of buying a starter home in the top 50 metros was $1,027 (60.1%) higher than renting one. 
• Renting is a more affordable option than buying in all of the 50 largest metros, whereas the number of metros favoring renting was 45 at the same time last year. 

New Residential Construction

HUD | Press Release | March 19, 2024

Key Takeaways: 

• Starts for buildings with 5+ units recovered slightly, increasing 8.6% MoM in February after decreasing -28% MoM in January. 
• Starts for single-family units increased 11.6% MoM and increased 35% YoY compared with February 2023.
• Permits for buildings with 5+ units were up slightly MoM with a 2.4% increase, and are down -32.8% YoY compared with February 2023.
• Permits for single-family units increased 29.5% YoY compared with February 2023.

New Residential Sales

HUD | Press Release | March 25, 2024

Key Takeaways:

• New Home Sales were down -0.3% MoM in February on a seasonally adjusted basis after increasing 1.5% MoM in January.
• New Home Sales in the Northeast region have increased 26% in the last 3 months compared with the previous 3 months.
• New Home Sales in the South decreased -7% in the last 3 months compared with the previous 3 months. 

Existing Home Sales

NAR | Press Release | March 21, 2024

Key Takeaways:

• Existing home sales increased 9.5% MoM in February, the largest monthly increase since February 2023.
• The median existing-home price for all housing types in February was $384,500, an increase of 5.7% YoY.
• Individual investors or second-home buyers represented 21% of existing homes purchased in February, the highest percentage since January 2022.

Pending Home Sales Index

NAR | Press Release | March 28, 2024

Key Takeaways:

• Pending home sales increased 1.6% MoM in February, after decreasing -4.9% MoM in January.
• The Midwest index increased 10.6% MoM, the South increased 1.1%, and the West (-6.5%) and Northeast (-0.3%) both decreased.