As rental demand skyrockets amid an affordable housing crisis, the median monthly asking rent in the U.S. rose 15% year-over-year to surpass $2,000 for the first time in May. Surging demand is spilling over from a housing market reaching its post-pandemic peak, and as a result, asking rents are up to a record high $2,002, Redfin reports.
Some regional markets are seeing even steeper price gains resulting from an influx of would-be buyers choosing to rent instead. Asking rents increased by a staggering 48% year-over-year in Austin, Texas, while Nashville, Tenn., Seattle, and Cincinnati all saw year-over-year gains of more than 30%.
“More people are opting to live alone, and rising mortgage-interest rates are forcing would-be homebuyers to keep renting,” said Redfin deputy chief economist Taylor Marr. “These are among the demand-side pressures keeping rents sky-high. While renting has become more expensive, it is now more attractive than buying for many Americans this year as mortgage payments have surpassed rents on many homes. Although we expect rent-price growth to continue to slow in the coming months, it will likely remain high, causing ongoing affordability issues for renters.”
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