Residential Real Estate News
Residential Rents in North America Rise 14 Percent in December
Biggest Jump in 2 Years, Austin Experiences Fastest Rising Rents
According to national property broker Redfin, average monthly listed rents in the U.S. increased 14.1% year over year to $1,877 in December 2021.
This was the largest annual jump since at least February 2019--the earliest month in Redfin's rental data.
Meanwhile, the national monthly mortgage payment for homebuyers climbed 21.6% year over year, also the biggest increase in Redfin's records.
"The growth in mortgage payments has been driven by both climbing prices and climbing mortgage rates," said Redfin Chief Economist Daryl Fairweather. "And those rising mortgage costs push more potential homebuyers into renting instead, which pushes up demand and prices for rentals. Mortgage rate increases are accelerating, which will cause both mortgage payments and rent to grow throughout 2022."
Year-over-year rent-price increases outpaced year-over-year mortgage payment increases for new homebuyers in just 16 of the 50 largest U.S. metro areas in December.
Rents Up Over 30% In Many Major Metro Areas
The 10 metro areas with the biggest increases in rent prices--up 29% year over year or more--were almost exclusively on the East Coast. The only exceptions were Austin, TX and Portland, OR.
Just one metro area saw rents fall in December from the same month a year earlier. Rents declined 0.8% in Kansas City, MO.
Top 10 Metro Areas With Fastest-Rising Rents Year Over Year
1. Austin, TX (40%)
2. Nassau County, NY (35%)
3. New York, NY (35%)
4. Newark, NJ (35%)
5. New Brunswick, NJ (35%)
6. Miami, FL (34%)
7. West Palm Beach, FL (34%)
8. Fort Lauderdale, FL (34%)
9. Jacksonville, FL (31%)
10. Portland, OR (29%)
