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These are the cities where rents rise and fall quickly

Topline

Rents in Seattle and Sun Belt cities fell the most in April due to increased housing supply, while the Midwest and Northeast saw sharp rent increases as housing construction slowed and demands were boosted, according to Redfin’s recent report examining rents in major metropolitan areas in the US are analyzed.

Key facts

Seattle’s average asking rent fell 7.3% year over year in April, the steepest decline among the 33 metros analyzed, due to a surge in apartment construction.

Nine of the 10 metros with the largest rent declines were in the Sun Belt, including Austin (-6.6%), Miami (-5%), San Diego (-4.7%) and Phoenix (-4.6% ). soared to accommodate the influx of new residents during the pandemic home-buying boom.

Four Florida cities – Jacksonville (-5.6%), Miami, Tampa (-4.3%) and Orlando (-3.2%) – were among these Sun Belt areas, as the Sunshine State’s attractive weather became a hotspot for migration. lack of state income tax and lower cost of living.

The Midwest saw the fastest annual rent growth as the lowest rents in the country led to strong demand: Minneapolis (10.3%) topped all metros analyzed, followed by Cincinnati (9.9%), Chicago (9.1%), Indianapolis (8%) Detroit (4.9%).

Rents also rose significantly in the Northeast, including New York (8.9%), Washington, DC (8.6%), and Boston (5.7%), due to a sharp decline in new home construction.

According to Zillow, the average U.S. rent in April was $1,997, up 3.6% from last year and 31.4% since the start of the pandemic, and remains high despite historically low housing affordability.

For rent for a 1-bedroom apartment in April, Midwestern cities such as Minneapolis ($1,500) and Cincinnati ($1,300) were below the national median ($1,323), according to Zillow: San Francisco ($2,872), New York ($3,564) and Boston ($3,235). ) were among the highest.

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Important background

Due to its status as the most affordable region in the US, the Midwest is attracting many new residents, resulting in a 5.3% annual increase in average asking rent in March. However, despite hitting a record, rents in the Midwest remained the lowest nationwide at $1,456, according to Redfin. The Northeast saw the second-largest rent increases in the same month, with asking rents rising 3.8% to $2,504, the highest in the country, due to a sharp decline in housing supply. According to the U.S. Department of Housing and Urban Development, the number of new home constructions in the Northeast fell as much as 44% year over year in April, while it fell 0.6% nationally. By contrast, the Sun Belt has been “building a ton of new apartments in recent years,” in part to meet rising demand from newcomers during the pandemic, says Redfin Senior Economist Sheharyar Bokhari. As demand has declined over time, property owners have struggled to fill vacancies, resulting in falling rents. This improved affordability for renters could be “a lesson for other American cities struggling with housing affordability challenges,” he added.

Tangent

Although rent growth has slowed since the pandemic peak, it continues to outpace wage increases. A recent StreetEasy report shows that rents have risen 30.4% nationally since 2019, while wages only rose 20.2%. Although this momentum waned, it continued last year, with rent growth still outpacing wage growth in about half of major metros. The biggest difference was in New York City, where rents rose more than seven times faster than wages. Other areas such as Boston, Chicago and Memphis also saw significant disparities, with wages actually declining in these cities, further exacerbating the affordability problem. While in some markets, such as San Jose, Houston, Austin and Portland, wage growth outperformed rent growth last year, the overall challenge for renters remains. Only in six of the 50 largest U.S. metros—San Francisco, San Jose, Houston, Minneapolis, Portland, and Milwaukee—have wages been consistently higher than rents since before the pandemic.

Read further

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