Average US monthly asking rents in February up 15.5% year-over-year to a record US$1,901, 0.5% month-over-month, the largest annual jump since at least February 2020; rising mortgage rates continue to push potential homebuyers into renting instead: Redfin

Sample article from our Housing & Economy

SEATTLE , March 21, 2022 (press release) –

Nationally, asking rents were up 15% in February, while homebuyer mortgage payments increased twice as fast

The average monthly asking rent in the U.S. increased 15% year over year to a record high of $1,901 in February, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s the largest annual jump since at least February 2020 (Redfin’s rental data goes back through February 2019). Meanwhile, the national median monthly mortgage payment for homebuyers climbed 31% year over year to $1,716, also the biggest increase in Redfin’s records.

“The cost of housing is going up for homebuyers and renters, but it’s going up more quickly for homebuyers,” said Redfin Chief Economist Daryl Fairweather. “That’s because mortgage rates have increased sharply and will likely continue to do so. When the cost of homeownership increases, many potential homebuyers opt to rent instead, which drives up rental prices. Americans should brace themselves for continued inflation across the board and try to find ways to cut costs. That might mean driving less to save on gas, or moving to a more affordable, walkable city like Albuquerque or Buffalo, where you can save on both housing and gas. The job market is great for workers right now, so it is a good time to move even if you can’t work remotely.”

Rental Market Summary

February
2022

Month-Over-
Month

Year-Over-
Year

Average Monthly Rent

$1,901

0.5%

15.5%

Median Monthly Mortgage Payment for Homebuyers w/ 5% Down Payment

$1,716

7.5%

30.9%

 

Mortgage payment increases outpaced asking rent increases in 44 of the 50 largest U.S. metro areas in February.

Austin Sees Bigger Jump In Asking Rents Than Any Other Metro

Rent increases hit 40% in Austin, TX, with Portland, OR not far behind at 39%. The Tri-State Area and Florida also saw rental increases of 30% or more.

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

  1. Austin, TX (+40%)
  2. Portland, OR (+39%)
  3. New York, NY (+36%)
  4. Newark, NJ (+36%)
  5. Nassau County, NY (+36%)
  6. New Brunswick, NJ (+36%)
  7. Fort Lauderdale, FL (+30%)
  8. West Palm Beach, FL (+30%)
  9. Miami, FL (+30%)
  10. Denver, CO (+29%)

Just two of the 50 most-populous metro areas saw rents fall in February from a year earlier. Rents declined 3% in Milwaukee and 2% in Kansas City, MO.

Metro Areas Where Rents Declined Year Over Year

  1. Milwaukee, WI (-2.6%)
  2. Kansas City, MO (-1.5%)

Average Asking Rents and Median Monthly Mortgage Payments for Homebuyers, February 2022

U.S. Metro
Area

Average
Asking
Rent

Year-Over-
Year
Change in
Average
Asking
Rent

Median
Monthly
Mortgage
(5% Down)

Year-Over-
Year Change
in Median
Monthly
Mortgage (5%
Down)

Difference
Between Year-
Over-Year
Change in
Median Monthly
Mortgage &
Average Asking
Rent

Anaheim, CA

$3,316

9.8%

$4,403

35.7%

26 pp

Atlanta, GA

$2,040

17.0%

$1,564

39.0%

22 pp

Austin, TX

$2,308

40.4%

$2,202

42.1%

2 pp

Baltimore, MD

$2,024

10.3%

$1,388

18.3%

8 pp

Boston, MA

$3,586

19.2%

$2,619

21.8%

3 pp

Charlotte, NC

$1,695

7.5%

$1,618

37.9%

30 pp

Chicago, IL

$2,262

4.5%

$1,299

20.9%

16 pp

Cincinnati, OH

$1,479

22.7%

$1,033

25.8%

3 pp

Cleveland, OH

$1,311

5.3%

$784

28.4%

23 pp

Columbus, OH

$1,486

8.5%

$1,189

28.0%

19 pp

Dallas, TX

$2,132

24.4%

$1,762

36.3%

12 pp

Denver, CO

$2,729

29.4%

$2,520

36.6%

7 pp

Detroit, MI

$1,560

8.2%

$727

23.9%

16 pp

Fort Lauderdale, FL

$3,010

30.3%

$1,599

29.9%

0 pp

Fort Worth, TX

$2,132

24.4%

$1,533

38.6%

14 pp

Houston, TX

$1,770

11.0%

$1,432

33.2%

22 pp

Indianapolis, IN

$1,382

17.6%

$1,101

27.7%

10 pp

Jacksonville, FL

$1,581

23.6%

$1,467

40.2%

17 pp

Kansas City, MO

$1,414

-1.5%

$1,194

22.2%

24 pp

Las Vegas, NV

$1,760

19.6%

$1,863

44.5%

25 pp

Los Angeles, CA

$3,316

9.8%

$3,685

26.5%

17 pp

Miami, FL

$3,010

30.3%

$1,982

36.1%

6 pp

Milwaukee, WI

$1,581

-2.6%

$1,069

18.9%

21 pp

Minneapolis, MN

$1,812

3.7%

$1,520

23.4%

20 pp

Montgomery County, PA

$2,279

14.5%

$1,678

22.7%

8 pp

Nashville, TN

$1,939

16.6%

$1,850

41.3%

25 pp

Nassau County, NY

$3,858

35.7%

$2,581

23.3%

-12 pp

New Brunswick, NJ

$3,858

35.7%

$1,872

27.4%

-8 pp

New York, NY

$3,858

35.7%

$2,951

25.8%

-10 pp

Newark, NJ

$3,858

35.7%

$1,982

23.7%

-12 pp

Oakland, CA

$3,535

16.1%

$4,075

26.4%

10 pp

Orlando, FL

$2,061

29.1%

$1,586

35.4%

6 pp

Philadelphia, PA

$2,279

14.5%

$1,101

18.9%

4 pp

Phoenix, AZ

$2,153

26.1%

$2,009

44.6%

19 pp

Pittsburgh, PA

$1,729

11.1%

$881

16.7%

6 pp

Portland, OR

$2,455

38.7%

$2,313

26.5%

-12 pp

Providence, RI

$2,175

14.2%

$1,678

32.5%

18 pp

Riverside, CA

$2,653

17.2%

$2,418

36.4%

19 pp

Sacramento, CA

$2,648

18.1%

$2,533

32.4%

14 pp

San Antonio, TX

$1,424

19.0%

$1,357

33.0%

14 pp

San Diego, CA

$3,181

18.9%

$3,524

31.6%

13 pp

San Francisco, CA

$3,535

16.1%

$6,718

25.0%

9 pp

San Jose, CA

$3,426

13.7%

$6,387

36.2%

22 pp

Seattle, WA

$2,762

28.6%

$3,306

29.6%

1 pp

St. Louis, MO

$1,486

3.3%

$947

20.9%

18 pp

Tampa, FL

$2,102

25.1%

$1,548

44.0%

19 pp

Virginia Beach, VA

$1,659

16.2%

$1,255

23.6%

7 pp

Warren, MI

$1,560

8.2%

$1,101

23.0%

15 pp

Washington, DC

$2,585

12.4%

$2,180

24.0%

12 pp

West Palm Beach, FL

$3,010

30.3%

$1,762

28.8%

-2 pp

National

$1,901

15.5%

$1,716

30.8%

15 pp

 

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

About Redfin

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.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220321005298/en/

Redfin Journalist Services:
Angela Cherry, 913-638-8249
press@redfin.com

Source: Redfin

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