Mortgage rates are up about 1% so far this year, but DC rents are up 12%. Wondering if it makes sense to rent or buy? Let’s chat!
The median monthly apartment rent in the U.S. hit a record high in March, according to a new report out this week.
The monthly rental report from Redfin found that the asking rent in the country increased 17% year over year to a record high of $1,940 in March, the largest annual jump in at least two years.
“Many potential first-time homebuyers are quickly being priced out of the market by record-high home prices and fast-increasing mortgage rates,” said Redfin Chief Economist Daryl Fairweather said in the report. “They are then faced with two options: rent or move somewhere with a lower cost of living. Those who choose to rent may save money in expensive housing markets in the near term, but long term, they may have to deal with continued rent increases, year after year."
DC rents are up 12% compared to a year ago, and the average asking rent in the city is now $2,595 a month. The most significant increases in rent were seen in Portland, OR (+40%) and Austin, TX (+38%).
For the report, Redfin used data from apartments at 20,000 buildings across the U.S. to compile rent numbers.