US Median Asking Rents Up 11% Year-Over-Year in August, Setting a New Record High

Redfin, the Seattle-based real estate brokerage firm, reported today (9-21-22) that US asking rents soared to a record high in August but noted that rent growth had moderated for the third consecutive month. According to Redfin, the US national median asking rent was up 11% year-over-year in August to $2,039. That is the smallest annual increase in a year, down from the peak gain of 19% of March 2022.

On a month-over-month basis, the median asking rent climbed 0.4% in August, the slowest growth since December 2021 and down from a 1.6% increase earlier in the year.

Adding additional background and analysis, Redfin’s Deputy Chief Economist Taylor Marr said:

“Rent growth will likely slow further as the Federal Reserve continues to raise interest rates higher. Higher interest rates impact the rental market because they put a damper on spending power in the economy as a whole, including renters’ budgets. Growth in rents is also likes to be slowed by a boost in rental supply. There are nearly a million rental units under construction that will hit the market in the coming months and years.”