SEATTLE, Nov. 23, 2021 /PRNewswire/ -- (NASDAQ: RDFN) —
Average monthly rents increased 13% nationwide over the past year,
the highest growth rate in at least two years, according to a new
report from Redfin (www.redfin.com), the technology-powered real
estate brokerage.
The national median monthly mortgage payment for homebuyers
posted even bigger growth, climbing 17% since October 2020. The 3.2% month-over-month increase
in mortgage payments for homebuyers was the largest since April,
and more than double the increase during the same period in 2019.
Growth rates for mortgage payments and rents had been converging,
but an uptick in mortgage rates and home prices caused
mortgage-payment growth to accelerate from September to October.
The 0.4% month-over-month increase in rents was the smallest in
eight months, which could just be a seasonal slowdown or may signal
some potential relief for renters.
Rent price increases outpaced mortgage payments for new
homebuyers in 29 of the 50 largest metro areas in the U.S. during
October.
Rents are Up Over 30% In Many Major Metro Areas
The metro areas with the biggest increases in rent prices—up
over 30%—were in Florida,
Washington State, Oregon, Texas, and New
York.
"Fast-rising rents could contribute to inflation woes," said
Redfin Chief Economist Daryl
Fairweather. "Employees facing higher rents are likely to
demand higher compensation from their employers, which could in
turn lead to even more inflation down the line. Skyrocketing rents
in some of the most desirable cities suggest that there is an
overall shortage of homes, and not just of homes for sale. The
'Build Back Better' bill that is currently being debated by
Congress contains $150 billion in
spending earmarked for affordable housing, which could at least
begin to address the issue, but the bottom line is that a lot more
housing needs to be built in the places that are growing the
most."
Top 10 Metro Areas With Fastest-Rising Rents
- West Palm Beach, FL (36%)
- Fort Lauderdale, FL
(36%)
- Miami, FL (36%)
- Seattle, WA (32%)
- Jacksonville, FL (32%)
- Portland, OR (31%)
- Austin, TX (31%)
- Newark, NJ (31%)
- Nassau County, NY (31%)
- New York, NY (31%)
Only St. Louis saw rents
decline at (-4%). St. Louis also
was the only metro to see a decrease in rent in October compared to
a year earlier.
Only 15 of the 50 largest metro areas saw rents rise more slowly
than the 13% national average, including Chicago (+11%), Pittsburgh (+7%) and San Francisco (+7%).
To read the full report, including the full metro-level data,
charts and methodology, please visit:
https://www.redfin.com/news/redfin-rental-report-rents-up-30pct-in-some-cities/
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.
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SOURCE Redfin