As inflation accelerated in November, so did rents across the country.
Nationwide average monthly rents surged 6.8 percent from October to November, a 20.5 percent increase from the same time last year, according to the latest data from Redfin.
Both were the highest increases recorded since Redfin began tracking rental data two years ago.
Average rent increased to $1,985 per month in November, up from $1,858 in October and $1,647 in November 2020.
Three markets in South Florida continued to see the sharpest increases. West Palm Beach, Fort Lauderdale and Miami all saw average rent rise 35 percent year-over-year in November, consistent with the 36 percent jumps recorded in October.
The New York metro market, meanwhile, saw rent growth accelerate last month. Average rents in New York City, Nassau County and Newark and New Brunswick, New Jersey, rose 34 percent year-over-year, eclipsing the 31 percent year-over-year jump recorded in October. The average rent across the four markets was $3,751, according to the report — the highest in the nation.
In Chicago, average rent rose 8.9 percent year-over-year to $2,360 per month. In Los Angeles, rent jumped 11.7 percent to $3,422. And in San Francisco, rent rose 9.9 percent to $3,375.
The 6.8 percent inflation rate in November — the highest since 1982 — played a factor in the increases, according to Redfin economist Daryl Fairweather.
“First inflation came for the for-sale housing market, and now it is coming for the rental market,” Fairweather wrote. “Many people have been priced out of the for-sale market and are looking to rent instead, but that demand is pushing up rents.”
Tenants in a select few major metros can rejoice in a year-over-year decline. In St. Louis, Missouri, average rent dipped 0.3 percent year-over-year to $1,443 per month. In Kansas City, rent dropped even further, down 2.3 percent year-over-year to $1,388. The lowest average rent can be found in Indianapolis, at $1,293 per month, though that city saw a 10.5 percent year-over-year increase.
Nationwide, the 6.8 percent surge followed a modest 0.8 percent month-over-month increase in September to October.
Meanwhile, Redfin reported median monthly mortgage payments were up 1.1 percent month-over-month in November, down from the 3.2 percent increase seen in October. Year-over-year, however, mortgage payments were up 19.9 percent.