Rent Growth Slows for Sixth Consecutive Month

condominiumImage via Pixabay

The median U.S. asking rent climbed 7.4% year over year to $2,007 in November, the smallest increase in 15 months and the sixth-consecutive month in which annual rent growth slowed, according to a new report from Redfin. By comparison, rents were up twice as much in the summer. November also marked the third-straight month of single-digit rent growth following almost a year of double-digit increases.

“Rent growth is likely to continue cooling,” said Redfin Economics Research Lead Chen Zhao. “Asking rents are already down annually in 14 of the metros Redfin tracks, and we expect declines to become more common in the new year. That should ultimately help slow inflation further. Slow inflation will lead to lower mortgage rates, which should also bring more homebuyers back to the market.”

Rental Market Summary November
2022
Month-Over-Month Year-Over-Year
Median Asking Rent $2,007 1.2% 7.4%
Rents Fell in 14 Major U.S. Metro Areas

In Milwaukee, the median asking rent declined 13.1% year over year in November, the largest drop among the 50 most populous U.S. metropolitan areas. Next came Houston (-6.3%), Austin, TX (-5.3%), Baltimore (-4.4%) and Minneapolis (-4.1%).

  1. Milwaukee, WI (-13.1%)
  2. Houston, TX (-6.3%)
  3. Austin, TX (-5.3%)
  4. Baltimore, MD (-4.4%)
  5. Minneapolis, MN (-4.1%)
  6. Chicago, IL (-3.8%)
  7. Denver, CO (-2.9%)
  8. Atlanta, GA (-1.8%)
  9. Dallas, TX (-1.8%)
  10. Jacksonville, FL (-1.8%)
  11. Boston, MA (-1.7%)
  12. Los Angeles, CA (-1.3%)
  13. Las Vegas, NV (-0.7%)
  14. New Orleans, LA (-0.3%)

Raleigh and Oklahoma City Saw the Largest Rent Increases

In Raleigh, NC, the median asking rent rose 21.8% year over year in November, the biggest increase among the 50 most populous metros. It was followed by Oklahoma City (17.9%), Indianapolis (15.8%), Cleveland (14.9%) and Nashville, TN (14.8%).

  1. Raleigh, NC (21.8%)
  2. Oklahoma City, OK (17.9%)
  3. Indianapolis, IN (15.8%)
  4. Cleveland, OH (14.9%)
  5. Nashville, TN (14.8%)
  6. Salt Lake City, UT (13.9%)
  7. Pittsburgh, PA (12.4%)
  8. Memphis, TN (10.1%)
  9. Cincinnati, OHMiami, FLSan Diego, CA (tied at 9.2%)
  10. Columbus, OH (8.4%)

To read the full report, including charts, additional metro-level data and methodology, please visit: https://www.redfin.com/news/redfin-rental-report-november-2022/.

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