August U.S. Rent Increases Outpace Florida Increases

 By Kerry Smith

At 10.7%, Orlando came closest to the national year-to-year rise of 11%. It was 10.3% in South Florida counties – and median rents actually fell 1.8% in Jacksonville.

SEATTLE – U.S. asking rents climbed to a record high in August, but the rate of rent growth moderated for the third-straight month.

National median asking rent was up 11% year-over-year to $2,039, according to a new report from Redfin – the smallest annual increase in a year, down from a peak gain of 19% in March. On a month-over-month basis, the median asking rent climbed 0.4%, the slowest growth since December 2021 and down from 1.6% a year earlier.

In Florida, however, rent growth lagged the U.S. rate. In one city, Jacksonville, Redfin says rents actually declined year-to-year, dropping 1.8%.

Florida metros year-over-year change in rent

1. Orlando: Up 10.7% (Median rent of $2,153)
2. Miami: Up 10.3% ($3,027)
3. Fort Lauderdale: Up 10.3% ($3,027)
4. West Palm Beach: Up 10.3% ($3,027)
5. Tampa: Up 5.3% ($2,186)
6. Jacksonville: Down 1.8% ($1,652)

“Rent growth will likely slow further as the Federal Reserve continues to raise interest rates,” says Redfin Deputy Chief Economist Taylor Marr. “Higher interest rates impact the rental market because they put a damper on spending power in the economy as a whole, including renters’ budgets.”

A boost in rental supply will also likely slow the pace of rent increases. “There are nearly a million rental units under construction that will hit the market in the coming months and years,” says Marr.

Top 10 metro areas for fastest-rising rents

1. Cincinnati, Ohio: 26%
2. Pittsburgh: 22%
3. Indianapolis, Indiana: 21%
4. Nashville, Tennessee: 20%
5. Portland, Oregon: 19%
6. New York City: 18%
7. Newark, New Jersey: 18%
8. Nassau County, New York: 18%
9. New Brunswick, New Jersey: 18%
10. San Antonio, Texas: 17%

Four of the 50 most populous metro areas saw rents fall in August year-to-year, including Jacksonville:

• Milwaukee, Wisconsin: -15%
• Minneapolis, Minnesota: -7%
• Jacksonville: -1.8%
• Baltimore -1.2%

© 2022 Florida Realtors®