Redfin Reports Typical U.S. Asking Rent Surpassed $2,000 for First Time in May

Rhea-AI Summary

The U.S. median monthly asking rent surpassed $2,000 for the first time, increasing by 15% year-over-year to a record $2,002. Major cities such as Austin, Nashville, Seattle, and Cincinnati experienced even higher rent spikes, with Austin seeing a record 48% increase. Although there's a slight slowdown in the rate of growth, Redfin's deputy chief economist Taylor Marr suggests that demand-side pressures and rising mortgage rates are keeping rents elevated. The report indicates only a few metros saw rent declines, with Milwaukee suffering a 10% drop.

Positive

• U.S. median asking rent exceeded $2,000 for the first time.
• Asking rents increased by 15% year-over-year.
• Austin recorded the highest rent increase at 48%, the largest ever for any metro area since 2019.

Negative

• Only three of the 50 most populous metro areas saw rent declines, indicating a limited market recovery.
• Rents in Milwaukee fell by 10%, signaling potential economic issues in the area.

Asking rents were up over 30% in Cincinnati, Seattle, and Nashville and nearly 50% in Austin

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — The median monthly asking rent in the U.S. surpassed $2,000 for the first time in May, rising 15% year over year to a record high of $2,002, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s on par with April’s annual increase of 15%, but a slowdown from March’s 17% gain.

“More people are opting to live alone, and rising mortgage-interest rates are forcing would-be homebuyers to keep renting,” said Redfin deputy chief economist Taylor Marr. “These are among the demand-side pressures keeping rents sky-high. While renting has become more expensive, it is now more attractive than buying for many Americans this year as mortgage payments have surpassed rents on many homes. Although we expect rent-price growth to continue to slow in the coming months, it will likely remain high, causing ongoing affordability issues for renters.”

Rental Market Summary	May 2022	Month-Over-Month	Year-Over-Year
Median Monthly Rent	$2,002	2%	15.2%

Rents Up Over 30% in Austin, Nashville, Seattle and Cincinnati

Asking rents surged 48% 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. Nashville, TN, Seattle, and Cincinnati also saw asking rents increase over 30% from a year earlier. Rent growth in Portland, OR (24%) fell below 30% for the first time since the start of the year, causing it to drop out of the top 10.

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

1. Austin, TX (48%)
2. Nashville, TN (32%)
3. Seattle, WA (32%)
4. Cincinnati, OH (32%)
5. Miami, FL (29%)
6. Fort Lauderdale, FL (29%)
7. West Palm Beach, FL (29%)
8. New York, NY (24%)
9. Nassau County, NY (24%)
10. New Brunswick, NJ (24%)

Just three of the 50 most populous metro areas saw rents fall in May from a year earlier. Rents declined 10% in Milwaukee and 3% in Kansas City, MO and Minneapolis. The same three metro areas saw rents decline in April as well.

Metro Areas Where Rents Declined Year Over Year

1. Milwaukee, WI (-10%)
2. Kansas City, MO (-3%)
3. Minneapolis, MN (-3%)

To read the full report, including charts, additional data and methodology, please visit: https://www.redfin.com/news/redfin-rental-report-may-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/20220609005867/en/

Redfin Journalist Services:

Ally Braun, 206-588-6863

press@redfin.com

Source: Redfin

FAQ

What was the median asking rent in the U.S. in May 2022?

The median asking rent in the U.S. surpassed $2,000, reaching a record high of $2,002 in May 2022.

How much did rents increase in Austin in May 2022?

Rents in Austin increased by 48% year-over-year, the largest increase reported.

What are the major cities experiencing significant rent increases?

Cities like Austin, Nashville, Seattle, and Cincinnati experienced rent increases over 30%.

What is the trend for rental prices according to Redfin's report?

The report indicates a slowdown in rent price growth, but prices remain high due to ongoing demand.

Which metro area saw the largest rent decline in May 2022?

Milwaukee saw the largest rent decline at 10% compared to the previous year.