June’s Month-Over-Month Rent Increases Smallest Since Start of 2022

Redfin, the Seattle-based, technology-powered real estate firm, reported on Monday (7-11-22) that rent increases slowed in June, with the national median asking rent rising year-over-year by 14%. This is the smallest annual increase in rent since October of 2021. Between May and June, rents only increased by 0.7%, the smallest month-over-month gain since the start of the year.

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.

Redfin’s chief economist, Dr. Daryl Fairweather, added her insight into the slowdown in rent appreciation, saying:

“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. 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.”