Rent Prices Increase 21% Year-Over-Year, Including 7% Between October and November

Redfin, the Seattle-based, technology-powered real estate company, is reporting that average monthly rents increased nationwide by 21% year-over-year and were up 7% in the month between October and November. Redfin’s rental data only goes back 2-years, but these are the highest annual and monthly growth rates in at least two-years.

In comparison, the national median monthly mortgage payment for homebuyers climbed at about the same annual rate—20%—but rose just 1% from October. Rapidly increasing housing costs are a big contributor to overall inflation, which hit 6.8% in November, its highest level since 1982.

Rent price increases outpaced mortgage payment increases for new homebuyers in 19 of the 50 largest metro areas in the U.S. during November.

In a statement prepared for the release of the report, Daryl Fairweather, Redfin’s Chief Economist said, “First inflation came for the for-sale housing market, and now it is coming for the rental market. Many people have been priced out of the for-sale market and are looking to rent instead, but that demand is pushing up rents. Anyone who bought a home before this year can pat themselves on the back because their mortgage payments are fixed, meaning their biggest recurring expense is immune to inflation.”

“If you are looking to buy or rent now, there’s nowhere to hide from inflation when it comes to housing costs,” Fairweather added. “The good news is that the tight labor market means it’s a great time to move somewhere more affordable. Chances are good that no matter where you go, you’ll be able to find a new job relatively quickly.”