Redfin, the Seattle-based, technology-powered real estate brokerage firm, is reporting that in May, for the first time ever, the median monthly asking rent in the U.S. surpassed $2,000. This is a year-over-year increase of 15%. The May increase is on par with April’s annual increase of 15%, but a slowdown when compared to March’s increase of 17%.
Asking rents surged 48% year over year in Austin, TX—the largest increase on record in any metro area since at least the beginning of Redfin’s rental data in 2019. Nashville, Seattle, and Cincinnati also saw asking rents increase over 30% from a year earlier. Rent growth in Portland, OR (24%) fell below 30% for the first time since the start of the year, causing it to drop out of the top 10.
Just three of the 50 most populous metro areas saw rents fall in May from a year earlier. Rents declined -10% in Milwaukee and -3% in Kansas City and Minneapolis. The same three metro areas saw rents decline in April as well.
In comments prepared for the release of the report, Redfin’s deputy chief economist, Taylor Marr, said:
“More people are opting to live alone, and rising mortgage-interest rates are forcing would-be homebuyers to keep renting. These are among the demand-side pressures keeping rents sky-high. While renting has become more expensive, it is now more attractive than buying for many Americans this year as mortgage payments have surpassed rents on many homes. Although we expect rent-price growth to continue to slow in the coming months, it will likely remain high, causing ongoing affordability issues for renters.”
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Redfin Reports Typical U.S. Asking Rent Surpassed $2,000 for First Time in May