Median U.S. Rents Topped $2,000 for the First Time
A new report from Redfin shows the median monthly asking rent in the U.S. surpassed $2,000 for the first time in May, with little relief in sight.
The U.S. median monthly asking rent reached $2,002 last month, up 2% from April and 15% year over year, according to Redfin.
The figure is on par with April’s year-over-year increase of 15% and slightly below the 17% recorded in March.
Rents in Austin, Texas surged 48% year over year, the largest increase observed by Redfin since it began recording rental information in 2019.
Nashville, Tennessee (33% increase year over year), Seattle, Washington (32%), Cincinnati, Ohio (32%), and Miami, Florida (29%) rounded out the top five.
Just three metro areas saw rents decline: Milwaukee, Wisconsin (-10%), Kansas City, Missouri (-3%), and Minneapolis, Minnesota (-3%).
What’s behind it:
Redfin says rising mortgage-interest rates and an increasing number of people opting to live alone are two of the demand-side factors driving the rise in rents.
The report predicts rent-price growth will slow in the coming months, but will likely remain high.
Most expensive areas:
Median asking rents are now above $3,000 in 15 metro areas. The top five most expensive areas are:
Nassau County, New York - $4,008
New Brunswick, New Jersey - $4,008
New York, New York - $4,008
Newark, New Jersey - $4,008
Boston, Massachusetts - $3,970