Average monthly rents increased 21 percent nationwide over the past year and 7 percent in a single month, according to a new report from Redfin.
In their report, the technology-powered real estate brokerage found that the increases were the highest annual and monthly growth rates in at least two years. Additionally, the national median monthly mortgage payment for homebuyers climbed at about the same annual rate— 20 percent — but rose just 1 percent from October. Redfin noted that rapidly increasing housing costs are a big contributor to overall inflation, which hit 6.8 percent in November, its highest level since 1982.
“First inflation came for the for-sale housing market, and now it is coming for the rental market,” said Redfin Chief Economist Daryl Fairweather. “Many people have been priced out of the for-sale market and are looking to rent instead, but that demand is pushing up rents. Anyone who bought a home before this year can pat themselves on the back because their mortgage payments are fixed, meaning their biggest recurring expense is immune to inflation. If you are looking to buy or rent now, there’s nowhere to hide from inflation when it comes to housing costs. The good news is that the tight labor market means it’s a great time to move somewhere more affordable. Chances are good that no matter where you go, you’ll be able to find a new job relatively quickly.”
The report also found that the 10 metro areas with the biggest increases in rent prices— up 28 percent year over year or more —were almost exclusively in Florida. Miami, Fort Lauderdale, and West Palm Beach all rounded out the top 3, with rent rates rising 35 percent year over year. Jacksonville and Tampa also cracked the top 10, with their rent rates increasing 33 percent and 28 percent, respectively.
Rent-price increases also outpaced mortgage payment increases for new homebuyers in 19 of the 50 largest metro areas in the U.S. during November.