According to the latest single-family rental index from global analytics firm CoreLogic, rental price growth slowed sharply in May, hitting its lowest rate since July 2010. In May 2019.

By comparison, in February 2008, two months after the Great Recession, annual rental price growth was 1.8% and did not slow until eight months later, in October 2008.

Even as local economies reopened in May, rental demand was hit by record unemployment rates and stay-at-home directives, according to the report.

“Single-family rental growth slowed sharply in May as the nation felt the full impact of the economic crisis caused by the pandemic,” Molly Boesel, chief economist at CoreLogic, said in a news release. “Some metropolitan areas, especially those that rely on tourism, were hit the hardest by job losses.”

Despite slowing demand, lower-priced rentals continued to drive rental price growth nationally, rising 2.8% in May, compared with a 1.3% increase among higher-priced rentals. price.

Among the 20 metro areas in the report, Phoenix had the highest year-over-year increase in single-family rentals in May 2020 at 6% year-over-year, while Honolulu, which was hit hard by the collapse of the tourism market, was the only metro to experience an annual drop in rental prices, falling by 0.4%.

In Miami, single-family rents increased 1.2% in May, less than the national average of 1.7%.

Unemployment rates, which hit their highest level in 80 years in April, remained elevated in May, creating income and economic uncertainty for millions of people. According to the report, that situation is expected to affect rental growth throughout 2020, especially in regions such as Florida, Texas and Arizona, as they continue to deal with a resurgence of COVID-19 cases.

“With unemployment rates forecast to remain high through the end of the year, we can expect to see a further decline in rental growth as the economy struggles this year,” Boesel said.