Monthly mortgage payments for U.S. homebuyers are rising 67% faster compared to rental prices, according to Redfin.
This marks the seventh month in a row that median mortgage payment increases for new homebuyers outpaced rent increases, according to Redfin's latest report.
In August, this trend occurred in 25 of the 50 largest metro areas across the nation despite the fact that "interest rates are falling back to near-record lows," according to the technology-powered real estate brokerage.
Still, the average nationwide monthly rent – sitting at about $1,836 – is still larger than the median monthly mortgage payment for new homebuyers, which is about $1,494.
"Record high home price growth has priced many renters out of buying, leaving many facing higher rents this summer as more households look to move thanks to the rise of remote and flexible work arrangements," Redfin lead economist Taylor Marr said.
And as the pandemic-induced eviction moratoriums and mortgage forbearance come to an end, landlords may "raise rents to cover the risk of future tenant protections or make up for lost rental income," Marr added.
The top spots around the nation with the fastest rising rents were in warmer but affordable destinations, particularly in Florida, California and Arizona. All of the aforementioned states "benefitted from a surge in migration thanks to a newly mobile workforce," according to Redfin.
However, rents aren't increasing everywhere. In fact, Pittsburgh, Pennsylvania, as well as San Jose, California, and St. Louis, Missouri, all had rent prices decrease by 5%, 3% and 1%, respectively.
Here are the top 10 metro areas with the fastest rising rent, according to Redfin's report:
- Tampa, Florida (29.2%)
- West Palm Beach, Florida (28.9%)
- Miami, Florida (28.9%)
- Fort Lauderdale, Florida (28.9%)
- Jacksonville, Florida (26.8%)
- Riverside, California (23.1%)
- Phoenix, Arizona (21.9%)
- Las Vegas, Nevasa (21.3%)
- New York, New York (21.3%)
- Newark, New Jersey (21.3%)