Redfin Reports Growth in Asking Rents Slows for the 1st Time in a Year

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Rents rose 15% year over year in April, down from March’s 17% increase. Still, Austin, Portland and South Florida saw rents surge more than 30%

The median monthly asking rent in the U.S. increased 15% year over year to a record high of $1,962 in April, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s below March’s 17% increase, marking the first slowdown in a year.

“The fact that rents are growing at a slower pace may be a very early sign that the Fed’s tactic of raising interest rates to quell inflation is working,” said Redfin Chief Economist Daryl Fairweather. “However, rents are still growing at nearly double the rate of overall inflation. Landlords in hot migration destinations like Austin, Portland and South Florida are charging new tenants 30% more than last year’s rent.”

Austin Sees Rents Soar Nearly 50%—the Biggest Increase in the Country

Asking rents surged 46% year over year in Austin, TX—the largest increase on record in any metro area since at least the beginning of Redfin’s rental data in 2019. Portland, OR and south Florida also saw asking rents increase over 30% from a year earlier.

Top 10 Metro Areas With Fastest-Rising Rents Year Over Year

Austin, TX (+46%)
Portland, OR (+33%)
Miami, FL (+31%)
Fort Lauderdale, FL (+31%)
West Palm Beach, FL (+31%)
Seattle, WA (+31%)
New York, NY (+28%)
Newark, NJ (+28%)
Nassau County, NY (+28%)
New Brunswick, NJ (+28%)

Just three of the 50 most-populous metro areas saw rents fall in April from a year earlier. Rents declined 8% in Milwaukee, WI, 4% in Kansas City and 2% in Minneapolis. This was the first annual decline in Redfin’s data for Minneapolis.

Metro Areas Where Rents Declined Year Over Year