In May, the U.S. median monthly asking rent topped $2,000 for the first time.
That’s according to a report from real estate company Redfin, which found that average rents rose 15% year over year last month, hitting a record high of $2,002.
The metropolitan areas with the fastest-rising rents all recorded increases above the median and Redfin identified New Brunswick as the metro with the 10th-fastest rate of increase, recording an uptick of 24% year over year.
Top 10 Metro Areas With Fastest-Rising Rents Year Over Year:
- Austin, Texas — 48%
- Nashville, Tenn. — 32%
- Seattle, Wash. — 32%
- Cincinnati, Ohio — 32%
- Miami, Fla. — 29%
- Fort Lauderdale, Fla. — 29%
- West Palm Beach, Fla. — 29%
- New York, N.Y. — 24%
- Nassau County, N.Y. — 24%
- New Brunswick, N.J. — 24%
Austin, Texas, led the ranking, with a 48% year-over-year rise in rents, while two New York metros preceded the Garden State’s representation on the list, with both Nassau County (No. 9) and New York (No. 8), also posting 24% year over year increases.
Out of the 50 most populous metro areas nationwide, Redfin reported just three year-over-year decreases: in Milwaukee (-10%), Kansas City, Mo. (-3%) and Minneapolis (-3%).
“More people are opting to live alone, and rising mortgage interest rates are forcing would-be homebuyers to keep renting,” said Redfin Deputy Chief Economist Taylor Marr. “These are among the demand-side pressures keeping rents sky-high.”
But just because they’re high, doesn’t mean they’re turning people off.
“While renting has become more expensive, it is now more attractive than buying for many Americans this year as mortgage payments have surpassed rents on many homes,” Marr continued. “Although we expect rent-price growth to continue to slow in the coming months, it will likely remain high, causing ongoing affordability issues for renters.”
Month over month, the median monthly rent increased by 2%, Redfin said. Monthly median rents in April showed a 15% annual increase, and before that in March, rents were up by 17% year over year.
In the Garden State, a slew of multifamily developments have experienced quick lease-ups of late, like Avenue & Green in Woodbridge, Crossings at Raritan Station in Somerset County and 351 Marin in Jersey City, which hit lease up for its more than 500 units in five months.
