Key Details:
- A new Redfin report shows the median asking rent in October rose 7.8% year over year, the smallest annual increase since August 2021
- The median rent for October was under $2,000 for the first time in six months
A new Redfin report shows median rent growth for October was 7.8% year over year — the smallest annual increase in 14 months (August 2021) — making October the second consecutive month of single-digit rent growth after about 12 months of double-digit increases.
The median asking rent in October was $1,983—dipping below $2,000 for the first time in six months.
Rent growth is decelerating
October is the fifth straight month of annual rent growth deceleration, offering some relief to renters who are already struggling with this year’s rent increases, especially with inflation driving up other costs.
Rents actually declined 0.9% from the previous month.
That said, according to Realtor.com®, the majority of landlords are still planning rent increases in the next 12 months—though they may, at least, be smaller than before.
With soaring inflation and recession fears a huge concern for many consumers, finding affordable housing remains a priority for families. Our data indicates that we are finally starting to see a bit of relief from the double-digit pace of rent growth that we experienced during the height of the pandemic. While it’s still a bit early to say that we’re officially on a downward trajectory for rent prices, the data shows a promising return toward normal seasonal slowdowns and suggests that the astronomical price gains of the past several years may be behind us.
Metros with the biggest drops in rent growth
In October, Milwaukee saw an annual drop in asking rents of 17.6% — the biggest drop among the 50 most populous U.S. metros, putting it at the top of the list below.
Eleven Metros with the biggest drops in rent growth:
- Milwaukee, WI (-17.6%)
- Minneapolis, MN (-7.8%)
- Baltimore, MD (-3.2%)
- Seattle, WA (-2.7%)
- Boston, MA (-2.5%)
- Austin, TX (-2.3%)
- Atlanta, GA (-2.2%)
- Columbus, OH (-1.7%)
- Los Angeles, CA (-1.1%)
- Chicago, IL (-1.1%)
- Houston, TX (-0.8%)
For context, only five metros saw rents drop in September.
Metros with the fastest-growing rents
While overall rent growth has slowed, some metros continue to increase rapidly. Oklahoma City saw a 31.7% year-over-year increase in rents—the biggest increase among the 50 most populous U.S. metros.
Ten metros with the fastest rising rents:
- Oklahoma City, OK (31.7%)
- Raleigh, NC (21.0%)
- Cincinnati, OH (17.0%)
- Louisville, KY (15.8%)
- Indianapolis, IN (15.1%)
- Providence, RI (13.6%)
- Salt Lake City, UT (13.6%)
- Nashville, TN (13.2%)
- Pittsburgh, PA (12.8%)
- San Antonio, TX (10.6%)
Top takeaways for real estate agents
If you’re serving one of the metros with the fastest-growing rents, use the data at your disposal to compare the cost of continuing to rent with the cost of buying a home—even if the home they buy isn’t quite their dream home.
Even in metros with declining rent growth, the data can show how much they stand to lose by continuing to rent versus how much they could gain by purchasing a home of their own.
Encourage your clients and community to think beyond the purchase of a home to the long-term benefits of being a homeowner.
