Average monthly rent in the United States to increase from 2020 rates

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Average monthly rents are up 13 percent since last year, with the bulk of the price hikes being recorded in popular metropolises, according to a new report. report from Redfin.

The report puts the average monthly rent across the country at $1,858 in October, up 12.5 percent year-on-year from 2020. The average rent in October in 2020 was just $1,651 but has since risen.

Some subways are seeing sharper rent increases than others. Three Florida markets — West Palm Beach, Fort Lauderdale and Miami — have all seen average rents rise a whopping 36 percent year-on-year.

Areas in the New York metro area are experiencing similar growth. In New York City, Nassau County in Long Island and New Jersey, the average annual rent rose 31 percent. Those three markets, as well as New Brunswick, New Jersey, have the highest rent in the nation on average at $3,665.

Several other major markets have also seen significant year-over-year rent increases. In Chicago, the median rent is up 11.1 percent to $2,450. In Los Angeles, rents are up 14.4 percent to $3,415, one of the highest in the nation. In San Francisco, rents are up 6.7 percent to $3,314.

Rising rents could contribute to inflation problems and reflect the shortage of housing shortage in high-growth areas, Redfin Chief Economist Daryl Fairweather said in the report.

There’s one major subway in the United States that can celebrate a year-over-year drop in rent: St. Louis, Missouri saw a 3.6 percent drop to an average rent of $1,447 per month. Meanwhile, San Antonio has the lowest median rent of major markets at $1,258.

However, there is good news for renters. Despite significant year-over-year gains in the market, average rents across the country have risen just 0.8 percent on a monthly basis – the smallest increase in eight months – in a possible sign of a slowdown in national rent increases.

Home buyers have also faced expensive changes this year, as Redfin reports median monthly mortgage payments rose 3.2 percent on a monthly basis in October. The figure marks the largest increase since April and a 16.9 percent increase in annualized mortgage payments.

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