The median US asking rent hit $2,038 in July, just $16 shy of the record set in August 2022, as shelter costs drove last month’s inflation print.
While nationally rent is up just 0.3% from a year ago, renters in the Northeast have seen median asking prices climb 4.6% to a record $2,533, according to a report from real estate brokerage Redfin Corp.
Peak-season rent in New York City’s boroughs soared in July, as the price of a new lease in Brooklyn approached $4,000, an 11% jump from the year prior. Rent in the Midwestern US has risen 4.3% to a record $1,416.
“A strong job market, cooling inflation and increasing consumer spending — which have decreased the likelihood of a recession — point to resilient renter demand,” said Redfin Deputy Chief Economist Taylor Marr.
The core consumer price index rose 0.2% for a second month, according to Bureau of Labor Statistics data posted Thursday. More than 90% of the rise in overall CPI was due to housing expenses, although lodging prices have already begun to come down.
As rents shatter records in the Northeast and Midwest, costs are cooling in the South and West. Rent surged with demand in cities like Miami and Dallas, where many fled during the pandemic, but prices have since begun to stabilize. On the west coast, tech layoffs could account for a softening rental market. And across the country, landlords are contending with rising supply and the threat of vacancies as more multifamily buildings are completed.
