US Asking Rents Climb 0.9% Month-Over-Month and 2.2% Year-Over Year in February

On Monday, Redfin reported that the median US asking rent increased 2.2% year-over-year to $1,981 in February. That is the largest gain reported since January 2023 and is 0.9% higher than January.

While rents increased in February, they are relatively stable compared to the past two years, when the pandemic sent the rental market on a rollercoaster ride, Redfin said. For the majority of 2022, growth in asking rents slowed rapidly following a surge during the pandemic; and in 2023, asking rents actually declined on a year-over-year basis.

The median asking rent in February was $73 below (-3.5%) the record high set in August 2022 (rents often peak in the summer and trough in the winter) but was still 24.3% (or $387) higher than it was in February 2020—the month before the pandemic and a moving frenzy started driving up rents. That means affordability remains strained for many US renters.

According to Redfin research data, the Northeast and Midwest lead the nation in rent increases. The median asking rent in the Northeast jumped 5.2% year-over-year to $2,481 in February—the largest gain in nine months. Rents in the Midwest saw a similar increase, rising 4.9% to $1,441—the biggest increase in five months. Meanwhile, asking rents in the South and West were essentially flat, rising 0.3% to $1,635 and falling 0.1% to $2,349, respectively.

Commenting on the report, Redfin Chief Economist Daryl Fairweather said:

“Mortgage rates ticked back up in February—a disappointing development for prospective homebuyers, who just a few months ago got a glimmer of hope as rates finally started to fall. With rates still elevated, many are opting to continue renting, which is buoying rental demand, and as a result, rent prices.”