U.S. Rental Market Crosses a New Threshold of Affordability

“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 an article for Redfin written by Tim Ellis.

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

Redfin deputy chief economist Taylor Marr is quoted in the article blaming the increasing cost of rent nationwide on more people living alone, as reported in May by the Federal Reserve, and rising interest rates forcing potential buyers out of the homebuying market.

“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,” says Marr.

Along with more detail on the Redfin data, the article lists the top ten metropolitan areas where rents are growing fastest compared to 2021:

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%)

Rents also declined in three metropolitan areas: Milwaukee (-10%), Kansas City (-3%), and Minneapolis (-3%).

The article includes median asking rent figures for 50 U.S. metropolitan areas.