US median rents exceed $2,000 in May

The median monthly asking rent in the United States topped a mere $2,000 for the first time in May, rising 15% year-over-year to a record high of $2,002, according to a new report from Redfin. That’s on par with April’s 15% annual increase, but a slowdown from March’s 17% gain.

“More and more people are choosing to live alone, and rising mortgage interest rates are forcing potential buyers to keep renting,” said Redfin deputy chief economist Taylor Marr. “These are among the pressures on the demand side that keep rents at exorbitant levels. Although renting has become more expensive, it is now more attractive than buying for many Americans this year, as mortgage payments have exceeded rents for many homes. While we expect rental price growth to continue to slow over the next few months, it will likely remain elevated, leading to ongoing affordability issues for tenants.

Asking rents jumped 48% year-over-year in Austin, Texas — the biggest increase on record across any metro area since at least Redfin’s rental data began in 2019. Nashville, Tennessee , Seattle and Cincinnati also saw asking rents rise 30% from a year earlier. Rent growth in Portland, Oregon (24%) fell below 30% for the first time since the start of the year, knocking it out of the top 10.

Top 10 Metropolitan Areas With Fastest Rising Year-Over-Year Rents

  1. Austin, TX (48%)
  2. Nashville, TN (32%)
  3. Seattle, Washington (32%)
  4. Cincinnati, Ohio (32%)
  5. Miami, Florida (29%)
  6. Fort Lauderdale, Florida (29%)
  7. West Palm Beach, Florida (29%)
  8. New York, New York (24%)
  9. Nassau County, New York State (24%)
  10. New Brunswick, New Jersey (24%)

Only three of the 50 most populous metropolitan areas saw rents drop in May from a year earlier. Rents fell 10% in Milwaukee and 3% in Kansas City, Missouri and Minneapolis. The same three metropolitan areas also saw rents drop in April.

Metro Areas Where Rents Decreased Year Over Year

  • Milwaukee, Wis. (-10%)
  • Kansas City, Missouri (-3%)
  • Minneapolis, Minnesota (-3%)

To read the full report, including charts, additional data and methodology, Click here.

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