Renters are facing higher costs as lease prices reached record highs in August. The national median asking rent climbed 11% year-over-year, though some areas saw increases more than double that.
For instance, asking rents in Cincinnati, Ohio, rose 26% in August year-over-year, according to data from real estate brokerage Redfin. That marked the largest jump among the most populous U.S. metropolitan areas tracked by Redfin.
All the top ten markets with the fastest rising rent year-over-year saw increases of at least 17%. However, rents in Pittsburgh, Indianapolis and Nashville jumped more than 20% last month, according to Redfin.
August did mark the smallest annual increase in the national median asking rent. Last month, asking rent also had the slowest growth month-over-month since December 2021.
THESE HOUSING MARKETS ARE THE MOST VULNERABLE IN RECESSION
Redfin Deputy Chief Economist Taylor Marr projected that rent growth is likely to slow even further as the Federal Reserve continues to raise interest rates, putting a “damper on spending power in the economy as a whole, including renters’ budgets.”
There are also nearly a million rental units under construction that are projected to hit the market in the coming months and years which will boost supply and further slow rent growth, according to Marr.
HOW HOUSING IS FUELING RED-HOT INFLATION
Four of the top 50 most populous metro areas even saw rents fall in August year-over year, which is up from three in July.
Still, many renters around the country are facing pretty significant increases.
Top 10 metro areas with the fastest rising rents over the past year:
- Cincinnati, Ohio: 26%
- Pittsburgh, Pennsylvania: 22%
- Indianapolis, Indiana: 21%
- Nashville, Tennessee: 20%
- Portland, Oregon: 19%
- New York, New York: 18%
- Newark, New Jersey: 18%
- Nassau County, New York: 18%
- New Brunswick, New Jersey: 18%
- San Antonio, Texas: 17%
Top four metros that saw rents fall in August from a year ago:
- Milwaukee, Wisconsin: 15%
- Minneapolis, Minnesota: 7%
- Jacksonville, Florida: 2%
- Baltimore, Maryland: 1%
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