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Last updated on October 31st, 2023 at 09:39 pm
Regular monthly rents got high 11% nationally over the past year, the top growth rate in at least two years, according to a new report from Redfin, the technology-powered real estate brokerage.
The national median monthly mortgage payment for homebuyers went upwards even faster, climbing 15% from September 2020.
This is the eighth following month that growth in median mortgage payments for new homebuyers has surpassed that of rents.
Rent price increases surpassed mortgage payments for new homebuyers in 26 of the 50 largest metro areas in the US during September.
Rents are rising more rapidly in Florida
The metro areas with the largest increases in rent prices were gathered in southern Florida where people have been gathering to escape more expensive metros in the northeast, but some luxurious cities like Seattle and New York were also in the top 10.
Rents increased the most from a year earlier in Fort Lauderdale, Miami, and West Palm Beach, all saw rents increase 36%.
Redfin Chief Economist Daryl Fairweather said, “There has been some of the biggest increase in rents in Florida credit to migration from remote workers who previously lived in cities like New York or San Francisco.”
“For the reason that out-of-towners typically rent before buying, this migration is likely driving a superior spike in demand for rentals to match up to homes for sale.
Florida also has some of the highest climate danger in the country from sea-level rise, storms, and heat.
So renting may be most attractive to residents who don’t want to make a long-term bet on the Florida housing market.”
Top 10 Metro Areas With Fastest-Rising Rents
- Fort Lauderdale, FL(+36%)
- Miami, FL(+36%)
- West Palm Beach, FL(+36%)
- Tampa, FL(+34%)
- Seattle, WA(+27%)
- Nassau County, NY(+27%)
- New Brunswick, NJ(+27%)
- New York, NY(+27%)
- Newark, NJ(+27%)
- Orlando, FL(+26%)
Only one metro area saw a decline in rent in September compared to a year earlier: Rents fell 1% in Pittsburgh, PA.
Rents were flat from a year before in St. Louis, MO.
Redfin’s rent-versus-own study referenced in this press release utilizes data from more than 20,000 apartment buildings across the US.
The report merges rental data on all sizes of apartments for rent with home sales data on all residential home sales (single-family, townhouse, and condos) from public records and the multiple listing service (MLS).
When the report goes according to the median mortgage payment for new homebuyers, it is based on a 5% down payment, the median sale price throughout the month, and the average mortgage interest rate for the month.
The report exercises a 5% down payment in order to be comparable to what an average renter may be able to practically achieve in savings.
Reference Source: Yahoo Finance
