Nationally, asking rents were up 15% in February, while homebuyer mortgage payments increased twice as fast
(NASDAQ: RDFN) — The average monthly asking rent in the U.S. increased 15% year over year to a record high of $1,901 in February, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s the largest annual jump since at least February 2020 (Redfin’s rental data goes back through February 2019). Meanwhile, the national median monthly mortgage payment for homebuyers climbed 31% year over year to $1,716, also the biggest increase in Redfin’s records.
“The cost of housing is going up for homebuyers and renters, but it’s going up more quickly for homebuyers,” said Redfin Chief Economist Daryl Fairweather. “That’s because mortgage rates have increased sharply and will likely continue to do so. When the cost of homeownership increases, many potential homebuyers opt to rent instead, which drives up rental prices. Americans should brace themselves for continued inflation across the board and try to find ways to cut costs. That might mean driving less to save on gas, or moving to a more affordable, walkable city like Albuquerque or Buffalo, where you can save on both housing and gas. The job market is great for workers right now, so it is a good time to move even if you can’t work remotely.”
Rental Market Summary |
February
|
Month-Over-
|
Year-Over-
|
Average Monthly Rent |
$1,901 |
0.5% |
15.5% |
Median Monthly Mortgage Payment for Homebuyers w/ 5% Down Payment |
$1,716 |
7.5% |
30.9% |
Mortgage payment increases outpaced asking rent increases in 44 of the 50 largest U.S. metro areas in February.
Austin Sees Bigger Jump In Asking Rents Than Any Other Metro
Rent increases hit 40% in Austin, TX, with Portland, OR not far behind at 39%. The Tri-State Area and Florida also saw rental increases of 30% or more.
Top 10 Metro Areas With Fastest-Rising Rents Year Over Year
- Austin, TX (+40%)
- Portland, OR (+39%)
- New York, NY (+36%)
- Newark, NJ (+36%)
- Nassau County, NY (+36%)
- New Brunswick, NJ (+36%)
- Fort Lauderdale, FL (+30%)
- West Palm Beach, FL (+30%)
- Miami, FL (+30%)
- Denver, CO (+29%)
Just two of the 50 most-populous metro areas saw rents fall in February from a year earlier. Rents declined 3% in Milwaukee and 2% in Kansas City, MO.
Metro Areas Where Rents Declined Year Over Year
- Milwaukee, WI (-2.6%)
- Kansas City, MO (-1.5%)
Average Asking Rents and Median Monthly Mortgage Payments for Homebuyers, February 2022
U.S. Metro
|
Average
|
Year-Over-
|
Median
|
Year-Over-
|
Difference
|
Anaheim, CA |
$3,316 |
9.8% |
$4,403 |
35.7% |
26 pp |
Atlanta, GA |
$2,040 |
17.0% |
$1,564 |
39.0% |
22 pp |
Austin, TX |
$2,308 |
40.4% |
$2,202 |
42.1% |
2 pp |
Baltimore, MD |
$2,024 |
10.3% |
$1,388 |
18.3% |
8 pp |
Boston, MA |
$3,586 |
19.2% |
$2,619 |
21.8% |
3 pp |
Charlotte, NC |
$1,695 |
7.5% |
$1,618 |
37.9% |
30 pp |
Chicago, IL |
$2,262 |
4.5% |
$1,299 |
20.9% |
16 pp |
Cincinnati, OH |
$1,479 |
22.7% |
$1,033 |
25.8% |
3 pp |
Cleveland, OH |
$1,311 |
5.3% |
$784 |
28.4% |
23 pp |
Columbus, OH |
$1,486 |
8.5% |
$1,189 |
28.0% |
19 pp |
Dallas, TX |
$2,132 |
24.4% |
$1,762 |
36.3% |
12 pp |
Denver, CO |
$2,729 |
29.4% |
$2,520 |
36.6% |
7 pp |
Detroit, MI |
$1,560 |
8.2% |
$727 |
23.9% |
16 pp |
Fort Lauderdale, FL |
$3,010 |
30.3% |
$1,599 |
29.9% |
0 pp |
Fort Worth, TX |
$2,132 |
24.4% |
$1,533 |
38.6% |
14 pp |
Houston, TX |
$1,770 |
11.0% |
$1,432 |
33.2% |
22 pp |
Indianapolis, IN |
$1,382 |
17.6% |
$1,101 |
27.7% |
10 pp |
Jacksonville, FL |
$1,581 |
23.6% |
$1,467 |
40.2% |
17 pp |
Kansas City, MO |
$1,414 |
-1.5% |
$1,194 |
22.2% |
24 pp |
Las Vegas, NV |
$1,760 |
19.6% |
$1,863 |
44.5% |
25 pp |
Los Angeles, CA |
$3,316 |
9.8% |
$3,685 |
26.5% |
17 pp |
Miami, FL |
$3,010 |
30.3% |
$1,982 |
36.1% |
6 pp |
Milwaukee, WI |
$1,581 |
-2.6% |
$1,069 |
18.9% |
21 pp |
Minneapolis, MN |
$1,812 |
3.7% |
$1,520 |
23.4% |
20 pp |
Montgomery County, PA |
$2,279 |
14.5% |
$1,678 |
22.7% |
8 pp |
Nashville, TN |
$1,939 |
16.6% |
$1,850 |
41.3% |
25 pp |
Nassau County, NY |
$3,858 |
35.7% |
$2,581 |
23.3% |
-12 pp |
New Brunswick, NJ |
$3,858 |
35.7% |
$1,872 |
27.4% |
-8 pp |
New York, NY |
$3,858 |
35.7% |
$2,951 |
25.8% |
-10 pp |
Newark, NJ |
$3,858 |
35.7% |
$1,982 |
23.7% |
-12 pp |
Oakland, CA |
$3,535 |
16.1% |
$4,075 |
26.4% |
10 pp |
Orlando, FL |
$2,061 |
29.1% |
$1,586 |
35.4% |
6 pp |
Philadelphia, PA |
$2,279 |
14.5% |
$1,101 |
18.9% |
4 pp |
Phoenix, AZ |
$2,153 |
26.1% |
$2,009 |
44.6% |
19 pp |
Pittsburgh, PA |
$1,729 |
11.1% |
$881 |
16.7% |
6 pp |
Portland, OR |
$2,455 |
38.7% |
$2,313 |
26.5% |
-12 pp |
Providence, RI |
$2,175 |
14.2% |
$1,678 |
32.5% |
18 pp |
Riverside, CA |
$2,653 |
17.2% |
$2,418 |
36.4% |
19 pp |
Sacramento, CA |
$2,648 |
18.1% |
$2,533 |
32.4% |
14 pp |
San Antonio, TX |
$1,424 |
19.0% |
$1,357 |
33.0% |
14 pp |
San Diego, CA |
$3,181 |
18.9% |
$3,524 |
31.6% |
13 pp |
San Francisco, CA |
$3,535 |
16.1% |
$6,718 |
25.0% |
9 pp |
San Jose, CA |
$3,426 |
13.7% |
$6,387 |
36.2% |
22 pp |
Seattle, WA |
$2,762 |
28.6% |
$3,306 |
29.6% |
1 pp |
St. Louis, MO |
$1,486 |
3.3% |
$947 |
20.9% |
18 pp |
Tampa, FL |
$2,102 |
25.1% |
$1,548 |
44.0% |
19 pp |
Virginia Beach, VA |
$1,659 |
16.2% |
$1,255 |
23.6% |
7 pp |
Warren, MI |
$1,560 |
8.2% |
$1,101 |
23.0% |
15 pp |
Washington, DC |
$2,585 |
12.4% |
$2,180 |
24.0% |
12 pp |
West Palm Beach, FL |
$3,010 |
30.3% |
$1,762 |
28.8% |
-2 pp |
National |
$1,901 |
15.5% |
$1,716 |
30.8% |
15 pp |
To view the full report, including charts and methodology, please visit:
https://www.redfin.com/news/redfin-rental-report-february-2022/
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220321005298/en/
Contacts
Redfin Journalist Services:
Angela Cherry, 913-638-8249
press@redfin.com
