Redfin: Asking Rents Hit Highest Level Since 2022

(Image courtesy of Redfin; Breakout image courtesy of Ricky Esquivel/pexels.com)

Redfin, Seattle, found the median asking rent increased 0.8% year-over-year in May to $1,653, just $47 below the record high hit in August 2022.

That’s the second consecutive increase after rents climbed 0.9% in April following almost a year of straight decreases.

Rents were up 0.5% between April and May. In general, the environment looks significantly more stable than it was over the past few years, when it saw some significant swings up and down.

“Demand from young renters remains high, as many of them are opting to stay put rather than contend with an increasingly unaffordable homebuying market,” said Redfin Senior Economist Sheharyar Bokhari. “But so far, rent price growth has been limited because there are enough new apartments to meet demand, even in the busiest time of year for the rental market.”

The vacancy rate has been around 6.6% for the past three quarters–the highest level since 2021.

Some cities have been more affected than others.

Washington, D.C., saw the largest year-over-year rise in asking rent in May–up 11.1%. Cincinnati saw a 10.9% jump, Chicago was at 10.8%, Virginia Beach, Va., was at 10.3% and Minneapolis was also at 10.3%.

However, rent did fall in some areas. Topping the list, Jacksonville, Fla., was down 10.1%, San Diego fell 8.7%, Austin was down 7.2%, Seattle fell 5.9% and Phoenix decreased 5.5%.

Redfin noted that rents are falling in the Sun Belt in part because of the influx of new construction, compared with rents rising in the Midwest amid less construction interest over the past few years.