Redfin Reports Typical U.S. Asking Rent Surpassed $2,000 for First Time in May
Asking rents were up over 30% in Cincinnati, Seattle, and Nashville and nearly 50% in Austin
SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — The median monthly asking rent in the U.S. surpassed $2,000 for the first time in May, rising 15% year over year to a record high of $2,002, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s on par with April’s annual increase of 15%, but a slowdown from March’s 17% gain.
“More people are opting to live alone, and rising mortgage-interest rates are forcing would-be homebuyers to keep renting,” said Redfin deputy chief economist Taylor Marr. “These are among the demand-side pressures keeping rents sky-high. While renting has become more expensive, it is now more attractive than buying for many Americans this year as mortgage payments have surpassed rents on many homes. Although we expect rent-price growth to continue to slow in the coming months, it will likely remain high, causing ongoing affordability issues for renters.”
Rental Market Summary
Median Monthly Rent
Rents Up Over 30% in Austin, Nashville, Seattle and Cincinnati
Asking rents surged 48% 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. Nashville, TN, Seattle, and Cincinnati also saw asking rents increase over 30% from a year earlier. Rent growth in Portland, OR (24%) fell below 30% for the first time since the start of the year, causing it to drop out of the top 10.
Top 10 Metro Areas With Fastest-Rising Rents Year Over Year
- Austin, TX (48%)
- Nashville, TN (32%)
- Seattle, WA (32%)
- Cincinnati, OH (32%)
- Miami, FL (29%)
- Fort Lauderdale, FL (29%)
- West Palm Beach, FL (29%)
- New York, NY (24%)
- Nassau County, NY (24%)
- New Brunswick, NJ (24%)
Just three of the 50 most populous metro areas saw rents fall in May from a year earlier. Rents declined 10% in Milwaukee and 3% in Kansas City, MO and Minneapolis. The same three metro areas saw rents decline in April as well.
Metro Areas Where Rents Declined Year Over Year
- Milwaukee, WI (-10%)
- Kansas City, MO (-3%)
- Minneapolis, MN (-3%)
To read the full report, including charts, additional data and methodology, please visit: https://www.redfin.com/news/redfin-rental-report-may-2022/
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
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Redfin Journalist Services:
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Released June 9, 2022