Single-family rent prices are surging at a record rate, led by homes in Sun Belt cities like Miami and Phoenix

As Americans begin to emerge from two years of hardship and return to big cities, demand for single-family rental homes is soaring, pushing prices to record highs.

According to a new report, single-family rents increased by a record 12.6% in January. In January 2021, the increase was 3.9%.

The major markets saw increases, but cities in the Sun Belt saw stunning numbers.

Single-family rents in Miami went up 38.6% in January. As Americans continued to migrate to warmer parts of the nation, gains of 19.9% and 18.9% were recorded in Phoenix and Orlando. The Washington, D.C. area saw the lowest annual growth in rent prices.

The price growth streak for single-family-rent was 10 months in a row in January.

The market for potential home buyers is so tough that demand for single- family rentals is strong. The number of listings are still historically low, even though home prices are up. Houses that are listed often sell in a matter of weeks.

Rent growth is strongest in the middle of the market. The weakest growth on the edges was found by CoreLogic.

• Lower-priced (75% or less than the regional median): up 12%, compared with 3% in January 2021
• Lower-middle priced (75% to 100% of the regional median): up 13.3%, from 3.2% in January 2021
• Higher-middle priced (100% to 125% of the regional median): up 13.4%, from 3.6% inJanuary 2021
• Higher-priced (125% or more than the regional median): up 12.2%, from 4.5% in January 2021

As more supply comes on the market to meet demand, the gains in apartment rents are slightly moderated.

The single-family rental market is different. While more builders and investors are opting for build-for-rent projects, the available inventory is still low due to supply chain disruptions and the industry labor shortage.