Story at a glance
- The analysis found that asking rents increased fastest in Oklahoma City.
- Rent increases nationwide are slowing, and September marks the fourth straight month of deceleration.
- Redfin analysts say the market is cooling as high rents during the pandemic relocation boom end, and the supply of rental units rises.
Rents increased fastest in Oklahoma City in September, where the asking rent rose 24 percent year-over-year even as the nationwide rental market continues to slow, according to a new analysis.
The analysis from the real estate company Redfin found that while median asking rents increased by 9 percent nationwide in the last year to $2,002 per month, they are also slowing significantly. September marks the fourth straight month where the growth in what is asked for rent decelerated.
Redfin analysts say the market is cooling due to increases in the supply of rental units, and an end to very high rents charged in some locations as people moved around during the pandemic. A previous analysis from the company show housing markets in pandemic-era hotspots, like Las Vegas and Sacramento, are among the fastest cooling markets in the nation.
“The rental market is coming back down to earth because high rents and economic uncertainty have put an end to the pandemic moving frenzy of 2020 and 2021, when remote work fueled an enormous surge in housing demand that would’ve otherwise been spread out over the coming years,” Redfin Deputy Chief Economist Taylor Marr said in the analysis.
“Rising supply is also causing rent growth to slow. Scores of apartments that have been under construction are now coming on the market, and more homeowners are choosing to become landlords instead of selling in order to hold on to their record-low mortgage rates,” Marr added.
Rents declined in 5 major metro areas — Milwaukee, Minneapolis, Baltimore, Houston and Chicago.
Marr said the company expects growth to slow further in the coming year as supply increases and more units are made available for rent.
Rents are still growing in a number of cities across the country, according to the analysis, which measured rent growth in the 50 most populous U.S. metros.
Oklahoma City was followed by Pittsburgh, where rents grew by 20 percent. Then came Indianapolis and Louisville, Ky., where rents rose by 17.9 percent and 17.5 percent, respectively. Nashville saw rents jump 17 percent in the past year.
The highest median asking rent is in New York. Median asking rents in the the Big Apple sit at $4,176 per month.
Here are the 10 metros where asking rents are rising fastest.
1. Oklahoma City: +24.1 percent
2. Pittsburgh: +20 percent
3. Indianapolis: +17.9 percent
4. Louisville: +17.5 percent
5. Nashville: +17 percent
6. Cincinatti: +16.5 percent
7. Raleigh: +16.4 percent
8. New York: +15.4 percent
9. Portland: +14 percent
10. San Antonio: +12.5 percent
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