Asking Rents were up in November, but the increase was the smallest since August 2021, according to the latest data from Redfin.
- The median U.S. asking rent climbed 7.4% year over year to $2,007 in November, down from 7.8% in October and almost a third of the 20.5% peak increase reported in October 2021.
- This smallest increase in 15 months and the sixth-consecutive month in which annual rent growth slowed.
4K. Rent in New York City may only be up 5.3% year-over-year but it was enough to push the median rent over $4k ($4,010 to be exact). San Fran took the number two spot with the median rent at $3,681(+8.1%) followed by San Jose ($3,450) and Boston ($3,628).
Biggest Gainer. Raleigh, NC is still reporting big jumps in prices with asking rents up 21.8% year-over-year followed by Oklahoma City (+17.9%) and Indianapolis (+15.8%).
Biggest Loser. Milwaukee, WI has seen the biggest drop by far with asking rents down 13.1% year-over-year followed by Houston (-6.3) and Austin (-5.3%).
- In all, 14 major metros are now in the red year-over-year.
Analysis. Chen Zhao, economist at Redfin, said that falling rents will help lower inflation pressure. “Asking rents are already down annually in 14 of the metros Redfin tracks, and we expect declines to become more common in the new year. That should ultimately help slow inflation further. Slow inflation will lead to lower mortgage rates, which should also bring more homebuyers back to the market.”