U.S. Rent Growth Slows, Up 4.8% in Dec.

A year-to-year comparison of rate increases finds the smallest jump in over a year. Rents rose less than that in 3 Fla. metros and were down 0.8% in Jacksonville.

SEATTLE – The median U.S. asking rent rose 4.8% year-over-year to $1,979 in December – the smallest increase since July 2021, according to a report from Redfin.

One year ago, rents grew at more than three times that pace.

December also marked the seventh straight month for a drop in annual rent growth, and the fourth consecutive month of single-digit rent growth after nearly a year of double-digit increases.

In December, rents fell 1.4% month-to-month and 3.6% from the August peak of $2,053.

In the four Florida cities tracked by Redfin, rents were also up year-to-year, but at a smaller pace than the national average. In one Florida metro, Jacksonville, average rents actually declined slightly less than 1% (-0.8%) year-to-year

Florida Metro Area – Median Asking Rent – Year-Over-Year Change

• Jacksonville – $1,595 – -0.8%
• Miami – $3,157 – 3.9%
• Orlando – $2,130 – 4.0%
• Tampa – $2,157 – 3.8%

“Rents have room to fall,” says Redfin Economics Research Lead Chen Zhao. “While they’ve cooled significantly from their peak, it still costs the typical renter 20% more to take on a new lease than it did two years ago.”

Zhao says an increasing number of rental units are coming into the market within the coming months. “Rental supply is growing due to an influx of construction in recent years, ebbing household formation and a slow homebuying market, which is driving many homeowners to rent out their properties rather than sell,” he says.

Rents down in 14 major U.S. metro areas

1. Minneapolis – Down 8.5%
2. Oklahoma City – Down 6.4%
3. Phoenix – Down 5.0%
4. Houston – Down 4.6%
5. Milwaukee – Down 4.1%
6. Chicago – Down 3.6%
7. Baltimore – Down 2.1%
8. Austin – Down 2.0%
9. Birmingham – Down 1.8%
10. Los Angeles – Down 1.5%
11. Virginia Beach – Down 0.9%
12. Jacksonville – Down 0.8%
13. New Orleans – Down 0.4%
14. Las Vegas – Down 0.4%

Largest year-to-year rent increases

1. Salt Lake City – Up 29.8%
2. Raleigh – Up 24.0%
3. Indianapolis – Up 16.3%
4. Cleveland – Up 14.6%
5. Nashville – Up 11.7%
6. Charlotte – Up 10.6%
7. Buffalo – Up 9.6%
8. Kansas City – Up 9.4%
9. Columbus – Up 7.7%
10. St. Louis – Up 7.4%

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