- Redfin reported on Monday that asking rents rose 14% in June, marking the smallest increase since October
- The real estate company noted that rent growth is easing as landlords respond to a tightening in tenant budgets brought on by inflation
- Additionally, rental markets in Miami, Fort Lauderdale and West Palm Beach are also starting to cool after the trio — along with Orlando — experienced some of the fastest-rising rents at the start of 2022
Rent increases tapered off in June, with the easing of prices reaching three Florida metros, according to a new report from Redfin.
In its latest analysis released on Monday, Redfin found that the national median asking rent rose 14% from a year earlier — the smallest annual increase since October. The technology-powered real estate brokerage also noted in its report that rents were up 0.7% from May, the smallest month-over-month gain since the start of the year.
“Rent growth is likely slowing because landlords are seeing demand start to ease as renters get pinched by inflation. With the cost of gas, food and other products soaring, renters have less money to spend on housing,” said Redfin chief economist Daryl Fairweather. “This slowdown in rent increases is likely to continue, however rents are still climbing at unprecedented rates in strong job markets like New York and Seattle and in areas like San Antonio and Austin that soared in popularity during the pandemic.”
The positive news also spread into the Sunshine State, with Miami, Fort Lauderdale, and West Palm Beach all falling out of the top 10 fastest-rising rents year over year last month as rental increases in the Florida metro areas began to moderate.
The same can not be said, however, for Cincinnati which experienced the largest jump among the 50 most populous U.S. metropolitan areas. The Ohio metro was followed by Seattle, Austin, and Nashville, which also saw increases of over 30%.
Additionally, just three of the 50 most populous metro areas saw rents fall in June from a year earlier. Rents declined 12% in Milwaukee, 7% in Minneapolis and less than 1% in Kansas City, MO. The same three metro areas saw rents decline in April and May as well.
“To combat soaring rents, more cities should follow Minneapolis’ lead,” Fairweather added. “Minneapolis eliminated single-family zoning in 2018, and last year got rid of a rule that required residential developers to include parking spaces. Now builders can replace parking spots with more housing units, which increases supply and therefore releases some upward pressure on rents.”
To view the full report, click here.