Report: U.S. rents surged 7% from October to November

Payments jumped 21% annually, marking the steepest monthly and yearly increases in at least 2 years

New York /
Dec.December 20, 2021 04:36 PM

Nationwide average rents in November surged 7% over October and 21% over November of last year, according to new data from Redfin (iStock)

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.





    Related Articles

    arrow_forward_ios
    From left: PropTech's Thomas Hennessy and Joseph Beck; Appreciate's Chris Laurence (Appreciate, LinkedIn/Tom Hennessy, LinkedIn/Joseph Beck, iStock)
    Single-family rental platform Appreciate to go public in SPAC deal
    Single-family rental platform Appreciate to go public in SPAC deal
    From left: Douglas Elliman's Scott Durkin, Stephen Kotler and Avi Dan-Goor (Douglas Elliman, iStock)
    Douglas Elliman bets on Vegas in westward expansion
    Douglas Elliman bets on Vegas in westward expansion
    366 State Street and 37 Sidney Place in Brooklyn (Corcoran, Zillow)
    Passive house asking $15M tops Brooklyn contracts
    Passive house asking $15M tops Brooklyn contracts
    100 Eleventh Avenue (iStock, Rhododendrites/CC BY-SA 4.0, via Wikimedia Commons, Illustration by Kevin Cifuentes for The Real Deal)
    Lower-end listings dominate Manhattan’s luxury deals
    Lower-end listings dominate Manhattan’s luxury deals
    Wildfire, Houses
    One in five homes facing wildfire risk, report says
    One in five homes facing wildfire risk, report says
    (Top) 1580 Meadow Lane in Southampton NY and (Bottom) 2056 Montauk Highway in Amagansett NY (Zillow)
    A tale of two oceanfront Hamptons homes
    A tale of two oceanfront Hamptons homes
    More and more homebuyers and investors are coming to the negotiating table with cash in hand. (iStock)
    In cities, “starter homes” getting more difficult to find
    In cities, “starter homes” getting more difficult to find
    A photo illustration of city developers and preservationists arm wrestling (iStock)
    Preservationists and developers duel upstate. Wanna guess who’s winning?
    Preservationists and developers duel upstate. Wanna guess who’s winning?
    arrow_forward_ios

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

    Loading...