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The median monthly nationwide asking rent reached a record high in April, amounting to over $1,900.
However, it’s not all bad news. According to a new report from Redfin, rents are starting to grow at a slower pace, a potential sign of relief for renters, especially those seeking to save up for a down payment on a home.
The median monthly nationwide asking rent grew 15% in April compared with a year ago, down from the 17% increase in March, according to Redfin. This marked the first slowdown in a year.
A “for rent” sign posted in front of an apartment building on June 02, 2021 in San Francisco, California. (Photo by Justin Sullivan/Getty Images / Getty Images)
Redfin chief economist Daryl Fairweather said in a statement that this may be “a very early sign that the Fed’s tactic of raising interest rates to quell inflation is working.”
In the meantime, “rents are still growing at nearly double the rate of overall inflation,” Fairweather added.
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Currently, renters in popular migration spots such as Portland, Oregon, and South Florida are getting charged 30% more compared with this time last year, Fairweather said. Austin is getting hit the hardest with rents surging nearly 50% compared with 2021.
University of California, Berkeley freshmen Sanaa Sodhi, right, and Cheryl Tugade look for apartments in Berkeley, Calif., Tuesday, March 29, 2022. (AP Photo/Eric Risberg) / AP Images)
In fact, only three out of the 50 most populous metro areas tracked by Redfin saw rent prices fall last month compared with a year earlier. Renters in Milwaukee saw rents decline 8% while renters in Kansas City and Minneapolis saw rents fall 4% and 2%, respectively.
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The top 10 areas with the fastest rising rents, according to Redfin data:
- Austin, Texas: 46%
- Portland, Oregon: 33%
- Miami, Florida: 31%
- Fort Lauderdale, Florida: 31%
- West Palm Beach, Florida: 31%
- Seattle, Washington: 31%
- New York, New York: 28%
- Newark, New Jersey: 28%
- Nassau County, New York: 28%
- New Brunswick, New Jersey: 28%
