Redfin Reports Asking Rents Increased 40% Year Over Year in Austin

Rhea-AI Summary

According to Redfin, the average monthly asking rent in the U.S. rose 15% year-over-year to $1,901 in February, marking the largest increase since 2020. In contrast, the national median monthly mortgage payment surged 31% to $1,716. The rapid rise in mortgage rates is driving potential homebuyers to opt for renting, consequently pushing rental prices higher. Key cities like Austin and Portland reported significant rent hikes of 40% and 39%, respectively. The report indicates ongoing inflationary pressures in the housing market and urges Americans to consider cost-saving measures.

Positive

• Average monthly asking rent reached a record high of $1,901, indicating strong rental demand.
• Daryl Fairweather, Redfin's Chief Economist, notes a robust job market, encouraging relocation for employment opportunities.

Negative

• National median monthly mortgage payment increased by 31% year-over-year, the largest jump in records, indicating affordability issues.
• Rent increases are attributed to homebuyers shifting to renting due to rising homeownership costs, reflecting instability in the housing market.

Nationally, asking rents were up 15% in February, while homebuyer mortgage payments increased twice as fast

SEATTLE--(BUSINESS WIRE)-- (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 2022	Month-Over- Month	Year-Over- Year
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

1. Austin, TX (+40%)
2. Portland, OR (+39%)
3. New York, NY (+36%)
4. Newark, NJ (+36%)
5. Nassau County, NY (+36%)
6. New Brunswick, NJ (+36%)
7. Fort Lauderdale, FL (+30%)
8. West Palm Beach, FL (+30%)
9. Miami, FL (+30%)
10. 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

1. Milwaukee, WI (-2.6%)
2. Kansas City, MO (-1.5%)

Average Asking Rents and Median Monthly Mortgage Payments for Homebuyers, February 2022

U.S. Metro Area	Average Asking Rent	Year-Over- Year Change in Average Asking Rent	Median Monthly Mortgage (5% Down)	Year-Over- Year Change in Median Monthly Mortgage (5% Down)	Difference Between Year- Over-Year Change in Median Monthly Mortgage & Average Asking Rent
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/

Redfin Journalist Services:

Angela Cherry, 913-638-8249

press@redfin.com

Source: Redfin

FAQ

What are the current average monthly asking rents in the U.S. as of February 2022?

The average monthly asking rent in the U.S. is $1,901 as of February 2022.

How much did the national median monthly mortgage payment increase in February 2022?

The national median monthly mortgage payment increased by 31% to $1,716 in February 2022.

Which cities saw the largest increase in rental prices in February 2022?

Austin, TX saw a 40% increase in rental prices, followed by Portland, OR with a 39% increase.

What impact do rising mortgage rates have on the rental market?

Rising mortgage rates lead potential homebuyers to rent, driving up rental prices.

What does the Redfin report suggest about the housing market in February 2022?

The Redfin report indicates ongoing inflation in the housing market, with significant increases in both rent and mortgage payments.