The median U.S. asking rent in October rose 7.8% year over year to $1,983, the smallest annual increase since August 2021, according to Redfin.
October marked the second straight month of single-digit rent growth following roughly a year of double-digit gains. It was also the fifth consecutive month in which annual rent growth decelerated, with rents rising at about half the pace they were six months earlier.
Rents declined 0.9% on a month-over-month basis.
“Demand for rentals is slowing because economic uncertainty is prompting many renters to stay put, and persistent inflation is shrinking renter budgets. That’s causing rent growth to cool,” comments Taylor Marr, Redfin’s deputy chief economist. “There are signs that inflation is starting to ease, but it will likely be a while before renters see meaningful relief given that rents are still up more than wages.”
In Milwaukee, asking rents fell 17.6% year over year in October, the largest drop among the 50 most populous U.S. metropolitan areas. Next came Minneapolis (-7.8%), Baltimore (-3.2%), Seattle (-2.7%) and Boston (-2.5%). Six other metros, including Austin and Atlanta, also experienced rent declines.
By comparison, only five metros saw rents fall in September.
In Oklahoma City, Okla., rents jumped 31.7% year over year in October, the biggest increase among the 50 most populous metros. It was followed by Raleigh, N.C. (21%); Cincinnati, Ohio (17%); Louisville, Ky. (15.8%); and Indianapolis (15.1%).
Redfin analyzed rent prices from across the 50 largest U.S. metro areas. The analysis uses data from more than 20,000 apartment buildings across the country.