Monthly Mortgage Payments Rose Faster Than Rents In September 2021 – NMP Skip to main content

Monthly Mortgage Payments Rose Faster Than Rents In September 2021

Navi Persaud
Oct 15, 2021
Photo of two people going over their bills and mortgage payment. Credit: iStockphoto.com/Pattanaphong Khuankaew.

While a recent report revealed the average monthly rent increased 11% across the nation in the past year, mortgage payments increased at a more rapid rate, increasing 15% year-over-year in Sept. 2021.

Redfin's latest report revealed that the latest reported increase in mortgage payments marks the eighth consecutive month of growth in median mortgage payments for new homebuyers. 

Despite median mortgage payments rising at a rapid rate, rent price increases outpaced mortgage payments for new homebuyers in 26 of the 50 largest metro areas in the US during September.

“Florida is seeing some of the largest increases in rents thanks to migration from remote workers who previously lived in cities like New York or San Francisco,” said Redfin chief economist Daryl Fairweather. “Because out-of-towners typically rent before buying, this migration is likely driving a larger spike in demand for rentals compared to homes for sale. Florida also has some of the highest climate risks in the country from sea-level rise, storms, and heat. So renting may be particularly attractive to residents who don't want to make a long-term bet on the Florida housing market.”

According to the report only one metro area saw a decrease in rent in Sept. compared to a year earlier. Rents fell 1% in Pittsburgh, PA. an rents were flat from a year ago in St. Louis, MO.

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