The median asking rent in the U.S. increased 7.8% year over year, totaling $1,983 in October, but that’s the smallest increase since August 2021, a Redfin report found.
October is the fifth consecutive month which saw a decrease in annual rent growth rate, declining by 0.9% on a month-over-month basis. Rents are rising at half the pace compared to six months ago.
Taylor Marr, deputy chief economist at Redfin, attributes the deceleration in rent costs to current economic conditions.
“Demand for rentals is slowing because economic uncertainty is prompting many renters to stay put, and persistent inflation is shrinking renter budgets,” Marr said. “There are signs that inflation is starting to ease, but it will likely be a while before renters see meaningful relief given that rents are still up more than wages.”
Among the 50 most populous U.S. metros, Milwaukee experienced the largest drop in rents, declining by 17.6%.
Other metros in which asking rents declined the most include Minneapolis, Minnesota, where it fell by 7.8%, Baltimore, Maryland, by 3.2%, Seattle, Washington, by 2.7%, Boston, Massachusetts, by 2.5%, Austin, Texas, by 2.3%, Atlanta, Georgia, by 2.2%, Columbus, Ohio, by 1.7%, Los Angeles, California, by 1.1%, Chicago, Illinois, by 1.1%, and Houston, Texas, by 0.8%.
Rents increased the most in the Midwest and South U.S.
Oklahoma City saw the highest jump among the 50 most populous metros, where rent increased by 31.7% year over year in October.
Following Oklahoma City, are Raleigh, North Carolina, where the asking rent increased by 21%, Cincinnati, Ohio, by 17%, Louisville, Kentucky, by 15.8%, Indianapolis, Indiana, by 15.1%, Providence, Rhode Island, by 13.6%, Salt Lake City, Utah, by 13.6%, Nashville, Tennessee, by 13.2%, Pittsburgh, Pennsylvania, by 12.8% and San Antonio, Texas, by 10.6%.
