Nationwide, the median asking rent rose 1% to
$1,648 in April—the first increase in a year
(NASDAQ: RDFN) —The median asking rent in Seattle fell 7.3% year
over year in April, according to a new report from Redfin
(redfin.com), the technology-powered real estate brokerage. That’s
the biggest drop among the U.S. metros Redfin analyzed.
Next came nine Sun Belt metros: Austin, TX (-6.6%), Nashville,
TN (-5.9%), Jacksonville, FL (-5.6%), Miami (-5%), San Diego
(-4.7%), Phoenix (-4.6%), Charlotte, NC (-4.5%), Tampa, FL (-4.3%)
and Orlando, FL (-3.2%).
Metro-level data in Redfin’s report covers apartment asking
rents in 33 major U.S. metropolitan areas. National data represents
the entire U.S. Please note that this report marks the debut of
Redfin’s new rental market data methodology, which is why some
figures may not match up with figures in past rental reports. A
detailed methodology is available in the report.
“The Sun Belt has built a ton of new apartments in recent years,
partly to meet the surge in demand brought on by the flood of
people who moved in during the pandemic housing boom. But the boom
is over, and now property owners are struggling to fill vacancies,
which is causing rents to fall,” said Redfin Senior Economist
Sheharyar Bokhari. “The good news is that the uptick in housing
supply in the Sun Belt has improved affordability for renters,
which can be a lesson for other American cities grappling with
housing affordability challenges.”
Rents in some Sun Belt markets are also just coming back down to
earth after skyrocketing to unsustainable levels during the
pandemic, Bokhari added.
Seattle is not in the Sun Belt, but like the Sun Belt, it has
seen a surge in apartment construction in recent years.
Apartment construction across the U.S. has been slowing lately,
but there’s still a pipeline of recently built units coming online,
which is one reason the rental vacancy rate has risen.
It’s worth noting that four of the 10 metros with the steepest
April rent declines are in Florida. A separate Redfin report
covering the homebuying market found that on the west coast of
Florida—which is facing a housing insurance crisis due to
intensifying natural disasters—home prices are stagnating as
housing supply surges.
Nationwide, Asking Rents Rose for First Time in a Year—Driven
By Increases in the Midwest and Northeast
The median U.S. asking rent rose 1.1% year over year to $1,648
in April—the first gain in a year. Asking rents climbed 1.7% from a
month earlier.
While rents ticked up in April, they’re stable relative to the
rollercoaster ride of the past few years; U.S. asking rents rose as
much as 17.6% year over year during the pandemic, and then fell as
much as 4.1% this past summer.
Rent climbed fastest in the Midwest, which hasn’t been building
as much as the Sun Belt. The Midwest is also the most affordable
region to live in, which helps buoy demand at a time when housing
affordability is strained across most of the country.
In Minneapolis, the median asking rent jumped 10.3% from a year
earlier in April—the biggest uptick among the metros Redfin
analyzed. It’s followed by Cincinnati (9.9%), Chicago (9.1%), New
York (8.9%), Washington, D.C. (8.6%), Indianapolis (8%), Virginia
Beach, VA (7.7%), Houston (6.7%), Boston (5.7%) and Detroit
(4.9%).
Elevated mortgage rates are likely bolstering U.S. rental
demand, and as a result, propping up prices. The average
30-year-fixed mortgage rate is more than double the 2.65% record
low hit during the pandemic. Some renters are putting off their
home purchasing plans because monthly payments for homebuyers are
near their all-time high.
While asking rents aren’t rising at the meteoric pace they were
during the pandemic, they remain elevated—causing affordability
challenges for some renters. The median asking rent in April was
just $52 below (-3.1%) the record high of $1,700 in August
2022.
To view the full report, including charts, additional
metro-level data and updated methodology, please visit:
https://www.redfin.com/news/redfin-rental-report-april-2024
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 run
the country's #1 real estate brokerage site. Our customers can save
thousands in fees while working with a top agent. 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 it up 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 $1.6 billion in commissions. We serve more than 100
markets across the U.S. and Canada and employ over 4,000
people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity
Home Loans®, Rent.™, Apartment Guide®, Title Forward® and
WalkScore®.
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/20240517129535/en/
Redfin Journalist Services: Kenneth Applewhaite, 206-414-8880
press@redfin.com
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