Rents in New York and South Florida metros surged more than 30%, led nationwide rise

Cities lead rise 13% overall rise in US rents from 2020

National /
Nov.November 24, 2021 03:30 PM

(iStock)

Average monthly rents rose by 13 percent since last year, with the bulk of the price surges recorded in popular metro areas, according to a new report from Redfin.

The report pins the average monthly rent nationwide in October at $1,858, a 12.5 percent year-over-year rise from 2020. Average rent in October in 2020 was only $1,651, but has been rising ever since.

Some metros are seeing sharper rent increases than others. Three markets in Florida — West Palm Beach, Fort Lauderdale and Miami — have all seen the average rent rise a whopping 36 percent year-over-year.

Areas in the New York metro area are experiencing similar growth. In New York City, Long Island’s Nassau County and New Jersey’s Newark, average rent rose 31 percent year-over-year. Those three markets, as well as New Brunswick, New Jersey, average the highest rent in the nation at $3,665.

Several other major markets have also seen sizable year-over-year rent increases. In Chicago, average rent is up 11.1 percent to $2,450. In Los Angeles, rent has increased 14.4 percent to $3,415, one of the highest in the nation. In San Francisco, rent is up 6.7 percent to $3,314.

Rising rents can contribute to issues around inflation and reflect the crunch of housing shortages in fast-growing areas, Redfin Chief Economist Daryl Fairweather said in the report.

There is one major metro in the United States that can celebrate a year-over-year decline in rent: St. Louis, Missouri saw a 3.6 percent downtick to an average rent of $1,447 per month. Meanwhile, San Antonio has the lowest average rent among the major markets at $1,258.

Good news may be on the way for renters, however. Despite the sizable year-over-year gains in the market, the average rent across the nation is only up 0.8 percent month-over-month — the smallest increase in eight months — in a possible sign of a slowdown among the national rent hikes.

Homebuyers have also faced pricey changes this year, as Redfin reports median monthly mortgage payments were up 3.2 percent month-over-month in October. The figure marks the biggest increase since April and an increase of 16.9 percent for mortgage payments year-over-year.





    Related Articles

    arrow_forward_ios
    Lewis Hamilton and 443 Greenwich Street (Getty, 443 Greenwich)
    Formula One champion Lewis Hamilton trades Tribeca penthouse for $50M
    Formula One champion Lewis Hamilton trades Tribeca penthouse for $50M
    Better.com CEO Vishal Garg (Better.com, iStock)
    Better.com CEO apologizes for botching layoffs, anonymously leaking video
    Better.com CEO apologizes for botching layoffs, anonymously leaking video
    Zillow: iBuyers Account for Record 1.9% of Home Sales in Q3
    iBuyers reached record housing market share, sales volume
    iBuyers reached record housing market share, sales volume
    CoStar CEO Andy Florance
    CoStar comes home to play
    CoStar comes home to play
    Cash-Out Home Refinancing Hits 14-Year High in Third Quarter
    Cash-out mortgage refinancing hits 14-year high
    Cash-out mortgage refinancing hits 14-year high
    Gov. Kathy Hochul (Getty, iStock)
    Hochul opens $539M homeowner assistance fund
    Hochul opens $539M homeowner assistance fund
    WATCH: SmartRent’s Lucas Haldeman on multifamily’s tech era
    WATCH: SmartRent’s Lucas Haldeman on multifamily’s tech era
    WATCH: SmartRent’s Lucas Haldeman on multifamily’s tech era
    Proptech unicorn Pacaso’s meteoric rise — and fallout
    Proptech unicorn Pacaso’s meteoric rise — and fallout
    Proptech unicorn Pacaso’s meteoric rise — and fallout
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...