National median rent approaches $2,000 per month
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According to data released by Redfin this week, the median rent in the United States is not far from reaching the $2,000 monthly mark. Rents rose 15 percent year-over-year in April, up from 17 percent in March, to $1,962 per month.
Still the same regions lead the way with Austin, Texas; Portland, Oregon; and most major Florida cities experiencing year-over-year increases of more than 30%.
According to Redfin's chief economist, Daryl Fairweather, rent increases have slowed, "possibly a sign that the Federal Reserve 's interest rate tactics to deal with inflation are starting to pay off. However, rents are still rising at twice the rate of inflation. Landlords in the most desirable destinations are experiencing exceptionally good times.
Last week, RealPage analyst Kim O'Brien reported that more than 57% of tenants who had their leases expire over the past 12 months renewed. That's a 3.5% year-over-year increase that represents a new high point from the last 51.5% recorded between 2010 and 2019. Additionally, tenants who renewed their leases last April agreed to a 10.7% rent increase. "While this increase is very high, it is relatively small compared to the increase experienced by new tenants who move in paying 18.7% more than their predecessors," O'Brien explained.
According to Redfin, Class A and B properties are experiencing the highest increases. The assets at the bottom of the scale (classes C and D) are recording increases that barely exceed inflation.
The report adds that rents fell in April, compared to one year earlier, in only three of the 50 cities surveyed: Milwaukee (8%), Kansas City (4%) and Minneapolis (2%).
Source : Redfin
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