With both home prices and mortgage rates rising at a rapid pace recently, more Americans are opting to rent instead. Not surprisingly, this increased demand for rental housing is also driving up rental prices. As of August 2022, asking rents in the U.S. rose to record highs. With this said, the rate of rent growth moderated for the third straight month. So where are rents nationally? The national median asking rent was up 11% year-over-year to $2,039 as of August 2022. The good news for renters is that rental price growth appears to be slowing down dramatically. In fact, on a month-over-month basis, median asking rent climbed by only 0.4%. This equates to the slowest growth since December 2021 and down from 1.6% a year earlier.
Top 10 metro areas for fastest-rising rents
If you happen to be located in any of the markets listed below, chances are that you have seen rents rising quite rapidly.
- #1. Cincinnati, Ohio: +26%
- #2. Pittsburgh: +22%
- #3. Indianapolis, Indiana: +21%
- #4. Nashville, Tennessee: +20%
- #5. Portland, Oregon: +19%
- #6. New York City: +18%
- #7. Newark, New Jersey: +18%
- #8. Nassau County, New York: +18%
- #9. New Brunswick, New Jersey: +18%
- #10. San Antonio, Texas: +17%
Year-over-year rental price changes for Florida metro markets
Given the increased demand, The Sunshine State has experienced rental price growth for several years now. Since these prices already exceeded the national average, we have seen a slowdown in the year-over-year rental price growth. Below is how the Florida metro markets ranked:
- #1. Orlando: Up 10.7% (Median rent of $2,153)
- #2. Miami: Up 10.3% ($3,027)
- #3. Fort Lauderdale: Up 10.3% ($3,027)
- #4. West Palm Beach: Up 10.3% ($3,027)
- #5. Tampa: Up 5.3% ($2,186)
- #6. Jacksonville: Down 1.8% ($1,652)
As the Federal Reserve continues to raise interest rates, we expect rental prices to stabilize. As interest rates rise, we will continue to see spending power diminish. This will likely lead to more Americans dropping down to lower priced units in the market. Furthermore, high rental prices combined with high inflation will force more Americans to have to put the dream of home ownership on hold for some time longer.
Are you in the South Florida market and looking to buy, sell, or rent? We can help. Contact a Live South Florida Realty, Inc. team member today! Also, don’t forget to download the free Florida Home Search app as well!