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The average monthly asking rent in the U.S. increased 15% year over year to a record high of $1,901 in February, according to a report from Redfin (redfin.com), the technology-powered real estate brokerage.
The largest jump in a major American metropolitan area? Austin, up 40% year over year. Fort Worth experienced a jump of 24.4%
Only two of the 50-most populous metropolitan areas in the country experienced declining rent rates. Rents fell 3% in Milwaukee and 2% in Kansas City, Missouri.
Top 10 Metro Areas With Fastest-Rising Rents Year Over Year
- Austin (+40%)
- Portland (+39%)
- New York (+36%)
- Newark (+36%)
- Nassau County, New York (+36%)
- New Brunswick, New Jersey (+36%)
- Fort Lauderdale, Florida (+30%)
- West Palm Beach, Florida (+30%)
- Miami (+30%)
- Denver (+29%)
Meanwhile, the national median monthly mortgage payment for homebuyers climbed 31% year over year to $1,716.
“The cost of housing is going up for homebuyers and renters, but it’s going up more quickly for homebuyers,” says Daryl Fairweather, Redfin chief economist, in a statement. “That’s because mortgage rates have increased sharply and will likely continue to do so. When the cost of homeownership increases, many potential homebuyers opt to rent instead, which drives up rental prices.
"Americans should brace themselves for continued inflation across the board and try to find ways to cut costs. That might mean driving less to save on gas, or moving to a more affordable, walkable city like Albuquerque or Buffalo, where you can save on both housing and gas. The job market is great for workers right now, so it is a good time to move even if you can’t work remotely.”
Business Wire