Redfin Reports Mortgage Payments Rose Faster Than Rents for the 8th Consecutive Month in September
Rents were up 11%, the fastest annual growth in at least two years; mortgage payments for new homebuyers rose 15%
SEATTLE, Oct. 15, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — Average monthly rents increased 11% nationwide over the past year, the highest growth rate in at least two years, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.
The national median monthly mortgage payment for homebuyers went up even faster, climbing 15% since September 2020. This is the eighth consecutive month that growth in median mortgage payments for new homebuyers has outpaced that of rents.
Rent price increases outpaced mortgage payments for new homebuyers in 26 of the 50 largest metro areas in the US during September.
Rents are rising the fastest in Florida
The metro areas with the biggest increases in rent prices were clustered in southern Florida where people have been flocking to escape more expensive metros in the northeast, but some expensive cities like Seattle and New York were also in the top 10. Rents were up the most from a year earlier in Fort Lauderdale, Miami, and West Palm Beach, which all saw rents go up 36%.
"Florida is seeing some of the largest increases in rents thanks to migration from remote workers who previously lived in cities like New York or San Francisco," said Redfin Chief Economist Daryl Fairweather. "Because out-of-towners typically rent before buying, this migration is likely driving a larger spike in demand for rentals compared to homes for sale. Florida also has some of the highest climate risks in the country from sea-level rise, storms and heat. So renting may be particularly attractive to residents who don't want to make a long-term bet on the Florida housing market."
Top 10 Metro Areas With Fastest-Rising Rents
- Fort Lauderdale, FL (+36%)
- Miami, FL (+36%)
- West Palm Beach, FL (+36%)
- Tampa, FL (+34%)
- Seattle, WA (+27%)
- Nassau County, NY (+27%)
- New Brunswick, NJ (+27%)
- New York, NY (+27%)
- Newark, NJ (+27%)
- Orlando, FL (+26%)
Only one metro area saw a decrease in rent in September compared to a year earlier: Rents fell 1% in Pittsburgh, PA. Rents were flat from a year ago in St. Louis, MO.
Redfin's rent-versus-own analysis referenced in this press release uses data from more than 20,000 apartment buildings across the US. The report combines rental data on all sizes of apartments for rent with home sales data on all residential home sales (single-family, townhouse and condos) from public records and the multiple listing service (MLS). When the report refers to the median mortgage payment for new homebuyers, it is based on a 5% down payment, the median sale price during the month and the average mortgage interest rate for the month. The report uses a 5% down payment in order to be comparable to what an average renter may be able to reasonably achieve in savings.
To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/redfin-rental-report-rent-up-11pct-in-september/
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email [email protected]. To view Redfin's press center, click here.
SOURCE Redfin
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