Redfin Reports Rents Are Growing Half as Fast as They Were Six Months Ago

Rhea-AI Summary

The median U.S. asking rent increased by 9% year over year in September, reaching $2,002. This marks the slowest growth since August 2021 and the first single-digit rise in a year.

Redfin's report indicates that rent growth has decelerated for four consecutive months, dropping to half the pace seen six months earlier. Key factors include rising supply and continued economic uncertainty affecting demand.

Oklahoma City and Pittsburgh exhibited the highest rent increases at 24.1% and 20% respectively, while Milwaukee faced the largest decline at -14.3%.

Positive

• Year-over-year median U.S. asking rent rose by 9% to $2,002.
• Oklahoma City saw the highest rent increase of 24.1%.

Negative

• The growth rate of rents has slowed to its lowest point since August 2021.
• Decline in rents in Milwaukee by 14.3% indicates market volatility.

Rents rose 9% year over year in September—the first single-digit increase in a year and a marked slowdown from 18% growth in March

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) —The median U.S. asking rent rose 9% year over year in September to $2,002, the slowest growth since August 2021 and the first single-digit increase in a year. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. September was the fourth-consecutive month in which annual rent growth decelerated, with rents climbing at half the pace they were six months earlier.

“The rental market is coming back down to earth because high rents and economic uncertainty have put an end to the pandemic moving frenzy of 2020 and 2021, when remote work fueled an enormous surge in housing demand that would’ve otherwise been spread out over the coming years,” said Redfin Deputy Chief Economist Taylor Marr. “Rising supply is also causing rent growth to slow. Scores of apartments that have been under construction are now coming on the market, and more homeowners are choosing to become landlords instead of selling in order to hold on to their record-low mortgage rates.”

Marr continued: “We expect rent growth to slow further into 2023 as Americans continue to hunker down and more new rentals hit the market.”

Rental Market Summary	September 2022	Month-Over-Month	Year-Over-Year
Median Monthly Rent	$2,002	-2.5%	8.8%

Rents Rose 20% or More in Oklahoma City and Pittsburgh

In Oklahoma City, OK, asking rents increased 24.1% year over year in September, the largest jump among the 50 most populous U.S. metropolitan areas. Pittsburgh saw an increase of 20%. Next came Indianapolis, Louisville, KY, Nashville, Cincinnati, Raleigh, NC and New York, all with gains of more than 15%.

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

1. Oklahoma City, OK (24.1%)
2. Pittsburgh, PA (20%)
3. Indianapolis, IN (17.9%)
4. Louisville, KY (17.5%)
5. Nashville, TN (17%)
6. Cincinnati, OH (16.5%)
7. Raleigh, NC (16.4%)
8. New York, NY (15.4%)
9. Portland, OR (14%)
10. San Antonio, TX (12.5%)

Five of the 50 most populous metro areas saw rents fall in September from a year earlier. Rents declined 14.3% in Milwaukee, 8.8% in Minneapolis, 2.8% in Baltimore and less than 1% in Houston and Chicago.

Metro Areas Where Rents Declined Year Over Year

1. Milwaukee, WI (-14.3%)
2. Minneapolis, MN (-8.8%)
3. Baltimore, MD (-2.8%)
4. Houston, TX (-0.6%)
5. Chicago, IL (-0.5%)

To view the full report, including charts and methodology, please visit:
https://www.redfin.com/news/redfin-rental-report-september-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/20221013005342/en/

Redfin Journalist Services:

Kenneth Applewhaite, 206-588-6863

press@redfin.com

Source: Redfin

FAQ

What is the median asking rent in the U.S. as of September 2022?

The median asking rent in the U.S. was $2,002 in September 2022.

How much did rents increase year over year in September 2022?

Rents increased by 9% year over year in September 2022.

Which city experienced the highest rent rise in September 2022?

Oklahoma City had the highest rent rise at 24.1%.

What was the trend in rent growth in the U.S. for September 2022?

Rent growth continued to decelerate, marking the fourth consecutive month of slowing.

What was the decline in rents for Milwaukee in September 2022?

Milwaukee saw a rent decline of 14.3% year over year.