US Median Rent Posts Smallest Annual Gain Since August 2021

Redfin, the real estate brokerage firm, reported on the Wednesday (11-16-22) that the US median asking rent in October rose 7.8% year-over-year to $1,983. This is the smallest annual increase since August of 2021.

According to Redfin’s analysis, October marked the second consecutive month of single digit rent growth. This follows approximately a year of double-digit increases. It was also the fifth consecutive month in which annual rent growth decelerated, with rents rising at about half the pace they were six months earlier. On a month-over-month basis, rents declined 0.9% in October.

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

“Demand for rentals is slowing because economic uncertainty is prompting many renters to stay put, and persistent inflation is shrinking renter budgets. That’s causing rent growth to cool. There are signs that inflation is starting to ease, but it will likely be a while before renters see meaningful relief given that rents are still up more than wages.”