Redfin Reports Asking Rents Rise 14% in June, the Smallest Increase Since October
July 11 2022 - 12:43PM
Business Wire
Rent growth is easing as landlords respond to a
tightening in tenant budgets brought on by inflation
(NASDAQ: RDFN) — Rent increases tapered off in June, with the
national median asking rent rising 14% from a year earlier—the
smallest annual increase since October, according to a new report
from Redfin (redfin.com), the technology-powered real estate
brokerage.
Asking rents were up 0.7% from May, the smallest
month-over-month gain since the start of the year.
“Rent growth is likely slowing because landlords are seeing
demand start to ease as renters get pinched by inflation. With the
cost of gas, food and other products soaring, renters have less
money to spend on housing,” said Redfin chief economist Daryl
Fairweather. “This slowdown in rent increases is likely to
continue, however rents are still climbing at unprecedented rates
in strong job markets like New York and Seattle and in areas like
San Antonio and Austin that soared in popularity during the
pandemic.”
Rental Market Summary
June 2022
Month-Over-Month
Year-Over-Year
Median Monthly Rent
$2,016
0.7%
14.1%
Rents Up Over 30% in Cincinnati, Seattle, Austin and
Nashville
Asking rents rose 39% year over year in Cincinnati, the largest
jump among the 50 most populous U.S. metropolitan areas. Next came
Seattle, Austin, TX and Nashville, TN, which also saw increases of
over 30%.
Miami, Fort Lauderdale, and West Palm Beach fell out of the top
10 in June as rental increases in the Florida metro areas began to
moderate.
Top 10 Metro Areas With Fastest-Rising Rents Year Over Year
- Cincinnati, OH (39%)
- Seattle, WA (33%)
- Austin, TX (32%)
- Nashville, TN (31%)
- New York, NY (27%)
- Nassau County, NY (27%)
- New Brunswick, NJ (27%)
- Newark, NJ (27%)
- Portland, OR (24%)
- San Antonio, TX (23%)
Just three of the 50 most populous metro areas saw rents fall in
June from a year earlier. Rents declined 12% in Milwaukee, 7% in
Minneapolis and less than 1% in Kansas City, MO. The same three
metro areas saw rents decline in April and May as well.
“To combat soaring rents, more cities should follow Minneapolis’
lead,” Fairweather explained. “Minneapolis eliminated single-family
zoning in 2018, and last year got rid of a rule that required
residential developers to include parking spaces. Now builders can
replace parking spots with more housing units, which increases
supply and therefore releases some upward pressure on rents.”
Metro Areas Where Rents Declined Year Over Year
- Milwaukee, WI (-12%)
- Minneapolis, MN (-7%)
- Kansas City, MO (-0.5%)
To view the full report, including a metro-level rental data,
please visit:
https://www.redfin.com/news/redfin-rental-report-june-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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220711005770/en/
Contact Redfin Redfin Journalist Services:
Isabelle Novak, 414-861-5861 press@redfin.com
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