Rents and Mortgage Payments Hit New Record Highs in February 2022

Redfin, the Seattle-based, technology-powered real estate brokerage firm, reported today (3-21-22) that the average monthly asking rent in the U.S. increased year-over-year by 15% to a record high of $1,901 in February 2022. According to the report, this is the largest annual jump since at least February 2020 (Redfin’s rental data goes back through February 2019). Meanwhile, the national median monthly mortgage payment for homebuyers climbed 31% year over year to $1,716, also the biggest increase in Redfin’s records.

Commenting on the record increases, Daryl Fairweather, Redfin’s Chief Economist said, “The cost of housing is going up for homebuyers and renters, but it’s going up more quickly for homebuyers. That’s because mortgage rates have increased sharply and will likely continue to do so. When the cost of homeownership increases, many potential homebuyers opt to rent instead, which drives up rental prices.”

“Americans should brace themselves for continued inflation across the board and try to find ways to cut costs,” Fairweather added. “That might mean driving less to save on gas, or moving to a more affordable, walkable city like Albuquerque or Buffalo, where you can save on both housing and gas. The job market is great for workers right now, so it is a good time to move even if you can’t work remotely.”

The Redfin report noted that mortgage payment increases have outpaced asking rent increases in 44 of the 50 largest U.S. metro areas in February.

When it comes to the cost of renting, Austin Texas experienced the largest year-over-year rent increase with a 40% jump. Not far behind is Portland, Oregon at 39%, while the Tri-State Area and Florida all saw rental increases of 30% or more.