U.S. Asking Rents Reach a Record High, Up 11% Year Over Year

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U.S. asking rents climbed to a record high in August, but rent growth moderated for the third-straight month. The national median asking rent was up 11% year over year to $2,039, according to a new report from Redfin, the technology-powered real estate brokerage. That’s the smallest annual increase in a year, down from a peak gain of 19% in March. On a month-over-month basis, the median asking rent climbed 0.4%, the slowest growth since December 2021 and down from a 1.6% increase a year earlier.

“Rent growth will likely slow further as the Federal Reserve continues to raise interest rates. Higher interest rates impact the rental market because they put a damper on spending power in the economy as a whole, including renters’ budgets,” said Redfin Deputy Chief Economist Taylor Marr. ”Growth in rents is also likely to be slowed by a boost in rental supply. There are nearly a million rental units under construction that will hit the market in the coming months and years.”

Rental Market Summary

August 2022

Month-Over-Month

Year-Over-Year

Median Monthly Rent

$2,039

0.4%

11.1%

Rents Rose More Than 20% in Cincinnati, Pittsburgh, Indianapolis and Nashville

In Cincinnati, asking rents rose 26% year over year in August, the largest jump among the 50 most populous U.S. metropolitan areas. Pittsburgh, Indianapolis and Nashville also saw increases of at least 20%. This was the first month since August 2021 that no metro area saw rents increase 30% or more from a year earlier.

Top 10 Metro Areas With Fastest-Rising Rents Year Over Year

  1. Cincinnati, OH (26%)
  2. Pittsburgh, PA (22%)
  3. Indianapolis, IN (21%)
  4. Nashville, TN (20%)
  5. Portland, OR (19%)
  6. New York, NY (18%)
  7. Newark, NJ (18%)
  8. Nassau County, NY (18%)
  9. New Brunswick, NJ (18%)
  10. San Antonio, TX (17%)
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Four of the 50 most populous metro areas saw rents fall in August from a year earlier, up from three in July. Rents declined 15% in Milwaukee, 7% in Minneapolis, 2% in Jacksonville, FL and 1% in Baltimore. Milwaukee and Minneapolis have seen declining asking rents since April.

Metro Areas Where Rents Declined Year Over Year

  1. Milwaukee, WI (-15%)
  2. Minneapolis, MN (-7%)
  3. Jacksonville, FL (-2%)
  4. Baltimore, MD (-1%)

To view the full report, including charts and methodology, visit https://www.redfin.com/news/redfin-rental-report-august-2022/.

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