Redfin Reports Rents Rose 7.8% in October—Slowest Growth in 14 Months

Rhea-AI Summary

The median U.S. asking rent rose 7.8% year-over-year in October to $1,983, marking the smallest annual increase since August 2021. This shift reflects a slowdown in rental demand driven by economic uncertainty and inflation affecting budgets. After a year of double-digit rent increases, growth has slowed to single digits for two consecutive months. The report highlights significant declines in asking rents across major metros, particularly Milwaukee, which saw a 17.6% decrease. Meanwhile, Oklahoma City had the highest rent increase at 31.7% year-over-year.

Positive

• Median U.S. asking rent rose 7.8% year-over-year to $1,983.
• Oklahoma City recorded the largest rent increase at 31.7% year-over-year.

Negative

• Median monthly rent declined by 0.9% month-over-month.
• Eleven major metros experienced rent declines, with Milwaukee showing the largest drop at 17.6%.

Eleven major metros saw declines, with the largest drops in Milwaukee, Minneapolis and Baltimore

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — The median U.S. asking rent in October rose 7.8% year over year to $1,983, the smallest annual increase since August 2021, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

October marked the second-straight month of single-digit rent growth following roughly a year of double-digit gains. It was also the fifth-consecutive month in which annual rent growth decelerated, with rents rising at about half the pace they were six months earlier. Rents declined 0.9% on a month-over-month basis.

“Demand for rentals is slowing because economic uncertainty is prompting many renters to stay put, and persistent inflation is shrinking renter budgets. That’s causing rent growth to cool,” said Redfin Deputy Chief Economist Taylor Marr. “There are signs that inflation is starting to ease, but it will likely be a while before renters see meaningful relief given that rents are still up more than wages.”

Rental Market Summary	October 2022	Month-Over-Month	Year-Over-Year
Median Monthly Rent	$1,983	-0.9%	7.8%

Rents Declined in 11 Major U.S. Metros

In Milwaukee, asking rents fell 17.6% year over year in October, the largest drop among the 50 most populous U.S. metropolitan areas. Next came Minneapolis (-7.8%), Baltimore (-3.2%), Seattle (-2.7%) and Boston (-2.5%). Six other metros, including Austin and Atlanta, also experienced rent declines. By comparison, only five metros saw rents fall In September.

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

1. Milwaukee, WI (-17.6%)
2. Minneapolis, MN (-7.8%)
3. Baltimore, MD (-3.2%)
4. Seattle, WA (-2.7%)
5. Boston, MA (-2.5%)
6. Austin, TX (-2.3%)
7. Atlanta, GA (-2.2%)
8. Columbus, OH (-1.7%)
9. Los Angeles, CA (-1.1%)
10. Chicago, IL (-1.1%)
11. Houston, TX (-0.8%)

Rents Increased Most in the Midwest, South

In Oklahoma City, rents jumped 31.7% year over year in October, the biggest increase among the 50 most populous metros. It was followed by Raleigh, NC (21%), Cincinnati (17%), Louisville, KY (15.8%) and Indianapolis (15.1%).

1. Oklahoma City, OK (31.7%)
2. Raleigh, NC (21.0%)
3. Cincinnati, OH (17.0%)
4. Louisville, KY (15.8%)
5. Indianapolis, IN (15.1%)
6. Providence, RI (13.6%)
7. Salt Lake City, UT (13.6%)
8. Nashville, TN (13.2%)
9. Pittsburgh, PA (12.8%)
10. San Antonio, TX (10.6%)

To read the full report, including charts, additional metro-level data and methodology, please visit: https://www.redfin.com/news/redfin-rental-report-october-2022/

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, 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 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 5,000 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/20221116005422/en/

Contact Redfin

Redfin Journalist Services:

Ally Braun, 206-588-6863

press@redfin.com

Source: Redfin

FAQ

What was the median U.S. asking rent in October 2022 for RDFN?

The median U.S. asking rent in October 2022 was $1,983.

How much did asking rents decline in Milwaukee in October 2022?

Asking rents in Milwaukee declined by 17.6% year-over-year in October 2022.

What are the rent growth trends reported by RDFN for October 2022?

Rent growth has slowed to single digits for two consecutive months, with a year-over-year increase of 7.8%.

Which city experienced the highest rent increase in October 2022 according to RDFN?

Oklahoma City experienced the highest rent increase at 31.7% year-over-year.

What economic factors are affecting the rental market according to RDFN?

Economic uncertainty and inflation are causing many renters to stay put, leading to a slowdown in rental demand.