According to a new report from Redfin [1], the median monthly asking rent in the U.S. increased 15% year-over-year to a record high of $1,962 in April—slightly below March’s 17% increase—marking the first slowdown in a year.
“The fact that rents are growing at a slower pace may be a very early sign that the Fed’s tactic of raising interest rates to quell inflation is working,” said Redfin Chief Economist Daryl Fairweather. “However, rents are still growing at nearly double the rate of overall inflation. Landlords in hot migration destinations like Austin, Portland and South Florida are charging new tenants 30% more than last year’s rent.”
Asking rents surged 46% year over year in Austin, TX—the largest increase on record in any metro area since at least the beginning of Redfin’s rental data in 2019. Portland, OR and south Florida also saw asking rents increase over 30% from a year earlier.
Top 10 metro areas with fastest-rising rents year-over-year:
- Austin, TX (+46%)
- Portland, OR (+33%)
- Miami, FL (+31%)
- Fort Lauderdale, FL (+31%)
- West Palm Beach, FL (+31%)
- Seattle, WA (+31%)
- New York, NY (+28%)
- Newark, NJ (+28%)
- Nassau County, NY (+28%)
- New Brunswick, NJ (+28%)
Just three of the 50 most-populous metro areas saw rents fall in April from a year earlier. Rents declined 8% in Milwaukee, WI, 4% in Kansas City and 2% in Minneapolis. This was the first annual decline in Redfin’s data for Minneapolis.
Metro areas where rents declined year-over-year:
- Milwaukee, WI (-8%)
- Kansas City, MO (-4%)
- Minneapolis, MN (-2%)
To view the full report, including charts and methodology, click here [2].