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Rent Growth Slows; Still Up 8% YoY

Rent, which mirrored the meteoric rise of home values in the post-pandemic market, is starting to recede according to a new report from Redfin, the median asking rent in October 2022 only rose by 7.8% year-over-year to $1,983, the smallest annual increase since August 2021. 

October also marked the second month of single-digit rent growth following a year of double-digit gains and the fifth month in which annual rent growth decelerated, now rising at roughly half the pace they were six months ago. On a monthly basis, rents declined 0.9% over September. 

“Demand for rentals is slowing because economic uncertainty is prompting many renters to stay put, and persistent inflation is shrinking renter budgets. That’s causing rent growth to cool,” said Taylor Marr, Redfin’s Deputy Chief Economist. “There are signs that inflation is starting to ease, but it will likely be a while before renters see meaningful relief given that rents are still up more than wages.” 

In Milwaukee, asking rents fell 17.6% year over year in October, the largest drop among the 50 most populous U.S. metropolitan areas. Next was Minneapolis (-7.8%), Baltimore (-3.2%), Seattle (-2.7%) and Boston (-2.5%). Six other metros, including Austin and Atlanta, also experienced rent declines. By comparison, only five major metros saw rents fall In September.

Top 10 metropolitan areas with fastest-slowing rents year-over-year in October 2022 were: 

  • Milwaukee, Wisconson (-17.6%) 
  • Minneapolis, Minnesota (-7.8%) 
  • Baltimore, Maryland (-3.2%) 
  • Seattle, Washington (-2.7%) 
  • Boston, Massachusetts (-2.5%) 
  • Austin, Texas (-2.3%) 
  • Atlanta, Georgia (-2.2%) 
  • Columbus, Ohio (-1.7%) 
  • Los Angeles, California (-1.1%) 
  • Chicago, Illinois (-1.1%) 
  • Houston, Texas (-0.8%) 

Top 10 metropolitan area with the fastest-rising rents were:   

  • Oklahoma City, Oklahoma (31.7%) 
  • Raleigh, North Carolina (21.0%) 
  • Cincinnati, Ohio (17.0%) 
  • Louisville, Kentucky (15.8%) 
  • Indianapolis, Indiana (15.1%) 
  • Providence, Rhode Island (13.6%) 
  • Salt Lake City, Utah (13.6%) 
  • Nashville, Tennessee (13.2%) 
  • Pittsburgh, Pennsylvania (12.8%) 
  • San Antonio, Texas (10.6%) 

Click here to view the report in its entirety. 

About Author: Kyle G. Horst

Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at [email protected]

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