{"id":73147,"date":"2021-09-10T05:00:17","date_gmt":"2021-09-10T12:00:17","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=73147"},"modified":"2024-10-03T16:01:18","modified_gmt":"2024-10-03T23:01:18","slug":"redfin-rental-report-rents-up-9pct","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/redfin-rental-report-rents-up-9pct\/","title":{"rendered":"Rental Market Tracker: Mortgage Payments for New Homebuyers Are Rising 67% Faster Than Rents"},"content":{"rendered":"

However, rents are climbing rapidly in some places, up over 20% from a year earlier in many Florida metros, Riverside, CA, Phoenix and Las Vegas.<\/h2>\n

Nationwide, average monthly rents increased 9% over the past year in August. However, the national median monthly mortgage payment for homebuyers rose 67% faster than rents during the same period. This is despite mortgage interest rates falling back to near-record lows<\/a>. This is the seventh consecutive month that growth in median mortgage payments for new homebuyers has outpaced that of rents. However, in August, growth in rents were speeding up while growth in mortgage payments were slowing.<\/p>\n

\"Rents<\/p>\n

Mortgage payments for new homebuyers outpaced rent price increases in 25 of the 50 largest metro areas in the US during August.<\/p>\n

Redfin’s inaugural rent-versus-own analysis 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 MLS. When this 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.<\/p>\n

Nationwide, the average monthly rent of $1,836 is still larger than the $1,494 median monthly mortgage payment for new homebuyers.<\/p>\n

\"Rents<\/p>\n

\u201cRecord high home price growth has priced many renters out of buying, leaving many facing higher rents this summer as more households look to move thanks to the rise of remote and flexible work arrangements,\u201d said Redfin Lead Economist Taylor Marr. \u201cThe end of pandemic eviction moratoriums and mortgage forbearance may also cause landlords to raise rents to cover the risk of future tenant protections or make up for lost rental income.\u201d<\/p>\n

\u201cAustin<\/a> has always been a hot real estate market, but the past six months have been wild,\u201d said Redfin Austin<\/a> market manager Jennifer Hoffer. \u201cWe\u2019ve been working with several landlords who want to sell their properties to cash in on high home prices. But renters right now really don’t want to move, so they\u2019re staying put with long-term leases because they have nowhere to go. I think we will see a spike in rents in the next few months as leases come to an end.\u201d<\/p>\n

Where Rents Rose and Fell the Most<\/h3>\n

Most of the metro areas with the biggest increases in rent were warm, affordable destinations in Florida, California and Arizona that have benefitted from a surge in migration thanks to a newly mobile workforce. Rents were up the most from a year earlier in Tampa, FL<\/a> (29.2%), followed by West Palm Beach, FL<\/a>, Miami, FL<\/a> and Fort Lauderdale, FL<\/a> (all at 28.9%).<\/p>\n

Top 10 Metro Areas With Fastest-Rising Rents<\/h4>\n