Buying a home is still cheaper than renting one for now, according to Redfin’s latest report…(Redfin)
- PURCHASE: The national median monthly mortgage payment for homebuyers climbed 31% year-over-year to $1,716, this is the biggest increase in Redfin’s records.
- RENTING: The average monthly asking rent in the U.S. increased 15% year-over-year to a record high of $1,901, this is also the largest annual jump since at least February 2020.
Last week, CoreLogic reported that Miami’s rental market saw the biggest year-over-year price hikes at 38.6%. However, Redfin reports that San Antonio’s market saw the biggest jump at 40.0% followed by Portland (+39.0%), New York, Newark, Nassau County, and New Brunswick County all at 36.0%.
- The only metro areas that saw a decline in rent prices were Milwaukee (-2.6%) and Kansas City (-1.5%).
Despite rents prices remaining higher, Redfin Chief Economist Daryl Fairweather says “The cost of housing is going up for homebuyers and renters, but it’s going up more quickly for homebuyers…That’s because mortgage rates have increased sharply, and will likely continue to do so.” This, oddly enough, will then cause rents to move higher as Fairweather explains. “When the cost of homeownership increases, many potential homebuyers opt to rent instead, which drives up rental prices.”