Redfin: Asking Rents Up 2% in February

(Image courtesy of Redfin; breakout image courtesy of Marlene Leppänen/pexels.com)

Redfin, Seattle, reported asking rents rose 2.2% year-over-year to $1,981 in February. They also grew by 0.9% from January.

That’s the largest year-over-year gain since January 2023. Asking rents then hit a low point in February 2023, contributing to the large annual jump last month.

Redfin posited recent fluctuations in mortgage rates may be playing a large role.

“Mortgage rates ticked back up in February–a disappointing development for prospective homebuyers, who just a few months ago got a glimmer of hope as rates finally started to fall,” said Redfin Chief Economist Daryl Fairweather. “With rates still elevated, many are opting to continue renting, which is buoying rental demand, and as a result, rent prices.”

Despite the jump, rents remain fairly stable compared with the environment over the past few years amid the COVID-19 pandemic. The median asking rent in February was 3.5% below the record high from August 2022, but 24.3% higher than February 2020.

Specifically, the median asking rent rose 5.2% in the Northeast to $2,481, the largest gain in nine months. Rents in the Midwest were up 4.9% year-over-year to $1,441, the biggest increase in five months.

In contrast, rents in the South and West were near flat. The South rose 0.3% to $1,635 and the West fell 0.1% to $2,349.