Average monthly asking rents increased 15% year-over-year in February to a record high of $1,901, while the median monthly mortgage payment for homebuyers also climbed 31% to a new high, Redfin reports. Housing costs are on the rise for both renters and buyers, but elevated mortgage rates are making homeownership the least affordable option.
Austin, Texas reported the largest rent increase of 40%, followed closely by a 39% gain in Portland Oregon. On the contrary, Milwaukee and Kansas City were the only two metros tracked by Redfin where rents declined year-over-year in February.
“The cost of housing is going up for homebuyers and renters, but it’s going up more quickly for homebuyers,” said Redfin Chief Economist Daryl Fairweather. “That’s because mortgage rates have increased sharply, and will likely continue to do so. When the cost of homeownership increases, many potential homebuyers opt to rent instead, which drives up rental prices. Americans should brace themselves for continued inflation across the board and try to find ways to cut costs.”
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