U.S. renters and homeowners took a record hit in the pocketbook this past year, Redfin reported.
The technology-powered real estate company said that the average monthly asking rent from February 2021 to February 2022 increased 15% to $1,901, which is an all-time high.
At the same time, the national median monthly mortgage payment skyrocketed a record 31% year over year to $1,716. From January to February alone the jump was 7.5%.
Redfin added that February mortgage payment increases exceeded rent increases in 44 of the 50 largest U.S. metro areas.
A spokeswoman said Redfin doesn’t offer a more detailed breakdown – by ZIP code, for example – but hopes to in the near future.
“The cost of housing is going up for homebuyers and renters, but it’s going up more quickly for homebuyers,” Redfin Chief Economist Daryl Fairweather said in a release. “That’s because mortgage rates have increased sharply and will likely continue to do so. When the cost of homeownership increases, many potential homebuyers opt to rent instead, which drives up rental prices.
“Americans should brace themselves for continued inflation across the board and try to find ways to cut costs. That might mean driving less to save on gas, or moving to a more affordable, walkable city like Albuquerque or Buffalo, where you can save on both housing and gas. The job market is great for workers right now, so it is a good time to move even if you can’t work remotely.”
Rent.com’s March Rent Report noted that it continues to be a blazing rental market for apartments and houses.
Nationally, the average rent for a one-bedroom unit rose 24.4% year over year, to $1,694, while the average rent for a two-bedroom was up 21.8%, to $1,997.
Meanwhile, the average cost to rent a single-family home climbed 7.8% across the country.
Rent.com also provided breakdowns by state. In Pennsylvania, the average rent grew 26.19% in the past year, from $1,330 to $1,679.
In some neighboring states, the increases were 26.36% in New Jersey; 15.7% in Delaware; and 15.54% in Maryland.