The median monthly 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 a new report from Redfin. The report surveyed rent prices in 20,000 apartment buildings across 50 U.S. metros.
The median price was 15% in April, but that's down compared to March’s 17%.
“More people are opting to live alone, and rising mortgage-interest rates are forcing would-be homebuyers to keep renting,” Redfin deputy chief economist Taylor Marr said. “These are among the demand-side pressures keeping rents sky-high. 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.”
Marr said that although rent-price growth should slow in the coming months, it will likely remain high and continue to cause affordability issues for renters.
Rent prices surged 48% year-over-year in Austin, TX, making it the largest increase on record in any metro area since at least the beginning of Redfin’s rental data in 2019. Austin ranks the area with the fastest raising rent in the U.S.
Other takeaways:
- Nashville, Seattle and Cincinnati saw rents increase over 30% from a year earlier.
- Florida had three areas that reported rapid rent price increases, including Miami, Fort Lauderdale and West Palm Beach. All three metro areas were at a 29% rate.
- Just three of the 50 most populous metro areas saw rents fall in May from a year earlier. Rents declined 10% in Milwaukee and 3% in Kansas City, MO and Minneapolis. The same three areas saw rents decline in April as well.
