The median monthly asking rent nationwide exceeded $2,000 for the first time in May, according to recent Redfin data.
Last month, median asking rent rose 15% from a year ago, reaching a record $2,002, the technology-powered real estate brokerage reported.
Consumers are being pushed into the rental market due to rising mortgage-interest rates, and higher home prices. However, it’s keeping rents sky-high, according to Redfin deputy chief economist Taylor Marr.
MORTGAGE RATES JUMP, REACHING 5.23%
Even with rent prices increases, it’s still more affordable for many Americans then buying a home “as mortgage payments have surpassed rents on many homes,” Marr said.
This week the 30-year fixed mortgage rate jumped to 5.23%, an increase from 5.09% a week ago, according to Freddie Mac. The average 30-year fixed mortgage rate was 2.96% this time last year.
“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,” Marr added.
Currently, rents in certain areas of the country are already surging nearly 50%.
HOME PRICES HAVE BEGUN FALLING IN THESE 10 CITIES, ACCORDING TO REALTOR.COM
In Austin, Texas, rents surged 48% compared to a year ago, which is the largest increase of any metro area since Redfin began tracking this data in 2019. Meanwhile, rents increased over 30% in Nashville, Tennessee, Seattle, Washington, and Cincinnati, Ohio, according to Redfin.
Here are the top 10 metro areas with the fastest rising rents compared to a year ago:
- Austin, Texas: 48%
- Nashville, Tennessee: 32%
- Seattle, Washington: 32%
- Cincinnati, Ohio: 32%
- Miami, Florida: 29%
- Fort Lauderdale, Florida: 29%
- West Palm Beach, Florida: 29%
- New York, New York: 24%
- Nassau County, New York: 24%
- New Brunswick, New Jersey: 24%