Austin had the biggest hike in asking rents in the U.S. in February from the same month a year earlier, topping New York and South Florida cities.
Asking rents in the Texas capital jumped 40 percent year-over-year.
(Redfin)
Nationally, rents increased 15 percent to a record median $1,901 in February– the largest annual jump since at least February 2020. The national median monthly mortgage payment for homebuyers jumped 30 percent year over year to $1,716, according to Redfin.
Mortgage payment increases outpaced asking rent increases in 44 of the 50 largest U.S. metro areas in February.
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“The cost of housing is going up for homebuyers and renters, but it’s going up more quickly for homebuyers,” said Redfin Chief Economist Daryl Fairweather. “That’s because mortgage rates have increased sharply, and will likely continue to do so. When the cost of homeownership increases, many potential homebuyers opt to rent instead, which drives up rental prices.”
Portland trailed just behind Austin at 39 percent, while the New York tri-state area and South Florida had rental increases between 30 and 36 percent.
Inflation is also a key factor in rising rental and home prices, according to Fairweather who suggests “driving less to save on gas, or moving to a more affordable, walkable city like Albuquerque or Buffalo, where you can save on both housing and gas.”
Of the 50 most-populous metro areas measured by Redfin, only two saw rents fall year-over-year. Rents declined 3 percent in Milwaukee and 2 percent in Kansas City.