Asking rents in the US declined 1.4% month-on-month, but increased 4.8% year-on-year.
This is the smallest increase in rent demand since July of 2021, according to data released on Thursday Redfin Corporation rdfn,
What happened: The rents, which have increased at a rate three times higher than last year, are now on the rise. Rental demand in the US rose to $1,979 on a year-over-year basis in December as rental demand eased. consistently high monthly cost,
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December marked the fourth consecutive month of single-digit growth after a year of roughly double-digit percentage growth.
Median asking rents hit an all-time high of $2,053 in August of 2022, and Redfin economists think prices have more room to decline.
“Whereas [rents] While it has cooled significantly from its peak, it still costs 20% more to take out a new lease than it did two years ago, said Redfin’s economics research lead. Chen Zhao in Note,
2022 Rental Market Summary – Median Asking Rent
|
month
|
asking for rent
|
month-to-month change
|
change from year to year
|
|
January
|
$1,897
|
0.42%
|
15.57%
|
|
february
|
$1,904
|
0.40%
|
16.50%
|
|
march
|
$1,944
|
2.10%
|
17.55%
|
|
april
|
$1,961
|
0.85%
|
16.00%
|
|
May
|
$2,006
|
2.31%
|
16.47%
|
|
june
|
$2,019
|
0.63%
|
15.17%
|
|
july
|
$2,032
|
0.62%
|
13.51%
|
|
august
|
$2,053
|
1.06%
|
12.26%
|
|
september
|
$2,002
|
-2.48%
|
8.79%
|
|
october
|
$1,983
|
-0.97%
|
7.80%
|
|
november
|
$2,007
|
1.23%
|
7.45%
|
|
december
|
$1,979
|
-1.4%
|
4.8%
|
“An increase in the number of rentals in the market should also lead to a decrease in rents in the coming months,” Zhao continued. “In recent years rental supply has been rising due to the influx of construction, home construction is slowing and there is a slowing home buying market, which is prompting many landlords to rent out their properties rather than sell. Used to be.”
Why it matters: Labor Department issued consumer price index data thursday showing that the shelter index – which includes rent for a primary residence – was the major factor in the monthly 5.7% increase in the index for all goods except food and energy.
The rent index increased 0.8% month-over-month, and the shelter index increased 0.8% month-over-month and 7.5% year-over-year.
“There is room for a drop in fares,” Zhao said.
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