Redfin Reports Growth in Asking Rents Slows for the 1st Time in a Year

Rhea-AI Summary

In April, the median monthly asking rent in the U.S. surged 15% year-over-year to a record $1,962, marking a slowdown from March's 17% increase. Key metropolitan areas like Austin, Portland, and South Florida experienced even higher hikes, with Austin seeing a staggering 46% rise, the largest recorded since 2019. While the overall rental growth indicates potential effects of the Federal Reserve's interest rate strategy, rents still outpace inflation, putting pressure on tenants. Only three of the 50 largest metros reported declines in rents, highlighting ongoing rental market challenges.

Positive

• Median monthly asking rent reached a record $1,962, indicating strong demand.
• Austin's rent increase of 46% reflects significant rental market strength.

Negative

• Rents are growing at nearly double the rate of overall inflation, impacting tenant affordability.
• Only three of the 50 most-populous metro areas reported rent declines, indicating limited relief in the market.

Rents rose 15% year over year in April, down from March’s 17% increase. Still, Austin, Portland and South Florida saw rents surge more than 30%

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — The median monthly asking rent in the U.S. increased 15% year over year to a record high of $1,962 in April, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s below March’s 17% increase, marking the first slowdown in a year.

“The fact that rents are growing at a slower pace may be a very early sign that the Fed’s tactic of raising interest rates to quell inflation is working,” said Redfin Chief Economist Daryl Fairweather. “However, rents are still growing at nearly double the rate of overall inflation. Landlords in hot migration destinations like Austin, Portland and South Florida are charging new tenants 30% more than last year’s rent.”

Rental Market Summary	April 2022	Month-Over-Month	Year-Over-Year
Median Monthly Rent	$1,962	1.1%	15.1%

Austin Sees Rents Soar Nearly 50%—the Biggest Increase in the Country

Asking rents surged 46% year over year in Austin, TX—the largest increase on record in any metro area since at least the beginning of Redfin’s rental data in 2019. Portland, OR and south Florida also saw asking rents increase over 30% from a year earlier.

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

1. Austin, TX (+46%)
2. Portland, OR (+33%)
3. Miami, FL (+31%)
4. Fort Lauderdale, FL (+31%)
5. West Palm Beach, FL (+31%)
6. Seattle, WA (+31%)
7. New York, NY (+28%)
8. Newark, NJ (+28%)
9. Nassau County, NY (+28%)
10. New Brunswick, NJ (+28%)

Just three of the 50 most-populous metro areas saw rents fall in April from a year earlier. Rents declined 8% in Milwaukee, WI, 4% in Kansas City and 2% in Minneapolis. This was the first annual decline in Redfin’s data for Minneapolis.

Metro Areas Where Rents Declined Year Over Year

1. Milwaukee, WI (-8%)
2. Kansas City, MO (-4%)
3. Minneapolis, MN (-2%)

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/redfin-rental-report-april-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/20220518005436/en/

Redfin Journalist Services:

Isabelle Novak, 414-861-5861

press@redfin.com

Source: Redfin

FAQ

What was the median monthly rent increase reported by RDFN in April 2022?

The median monthly rent increased 15% year-over-year to $1,962.

Which metro area had the largest rent increase according to RDFN's report?

Austin, TX, had the largest rent increase at 46% year-over-year.

How do rent increases in April 2022 compare to those in March 2022?

April's rent increase of 15% is a slowdown from March's 17% increase.

Which other areas besides Austin reported significant rent increases?

Portland, OR, and South Florida both reported rent increases of over 30%.

What does the rent growth suggest about inflation and the Fed's interest rates?

The slower rent growth may indicate the Fed's rate hikes are starting to affect inflation, but rents still exceed overall inflation rates.