Rate of Rent Increases Slowed for Second Month

SEATTLE – U.S. landlords’ “asking rents” were up 14% year -over-year to $2,032 in July, according to a report from Redfin – the smallest annual increase since November and down from June (15%) and May (16%).

Month-over-month, the median asking rent climbed 0.6% –its slowest growth since February and down from 2.1% one year earlier.

“Big rent hikes may finally be coming to an end as landlords adjust to waning tenant budgets that are being strained by the rising cost of groceries, gas and other regular expenses,” says Redfin Chief Economist Daryl Fairweather.

“Still, rents are increasing faster than overall inflation, which has started to ease. We expect rental growth to continue to slow, but markets with strong job growth and limited new housing construction, like New York and Seattle, will likely continue to experience large rent increases.”

Nationwide in July 2022, actual rents were up slightly less at 13.5% year-to-year. July’s median monthly rent was $2,032.

Florida metros varied widely, with Jacksonville’s 3.6% year-to-year increase below the national average, even as three South Florida counites saw increases greater than 17%.

Florida market year-over-year rent increases

1. Jacksonville: 3.6% (median $1,661 in July 2022)
2. Tampa: 12.2% ($2,227)
3. Orlando: 14.1% ($2,164)
4. Fort Lauderdale: 17.8% ($3,068)
5. Miami: 17.8% ($3,068)
6. West Palm Beach: 17.8% ($3,068)

Asking rents rose 31% year over year in Cincinnati, the largest jump among the 50 most populous U.S. metropolitan areas, though down from 39% the month before.

10 metros with fastest-rising year-over-year rents

1. Cincinnati: 31%
2. Nashville: 26%
3. Pittsburgh: 24%
4. New York: 23%
5. Newark: 23%
6. Nassau County: 23%
7. New Brunswick, New Jersey: 23%
8. Seattle: 22%
9. Indianapolis: 21%
10. San Antonio: 21%

Just three of the 50 most populous metro areas saw rents fall year-to-year: 10% in Milwaukee, 8% in Minneapolis and less than 1% in Baltimore. Milwaukee and Minneapolis have seen declining asking rents since April.

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