U.S. median monthly asking rents cooled for the second-straight month in July, climbing 14% Y/Y to $2,032, according to a report by Redfin.
“Big rent hikes may finally be coming to an end as landlords adjust to waning tenant budgets that are being strained by the rising cost of groceries, gas and other regular expenses,” said Redfin Chief Economist Daryl Fairweather.
July's increase was the smallest since November as landlords react to smaller tenant budgets. Rental growth is expected to keep slowing, "but markets with strong job growth and limited new housing construction, like New York and Seattle, will likely continue to experience large rent increases,” Fairweather contended.
The median asking rent rose 0.6% in July vs. June, the slowest growth rate since February and down from a 2.1% increase a year before.
Cincinnati, Ohio rents jumped the most among the 50 most populous U.S. metropolitan areas, surging 31% Y/Y in July. Still, that's down from a 39% increase in June.
Only three of the 50 metro areas recorded a Y/Y decline in rents, including Milwaukee, Wisconsin (-10%), Minneapolis, Minnesota (-8%) and Baltimore, Maryland (-0.3%).
Apartment REITs that may be impacted by slowing rents include: Equity Residential ( NYSE: EQR ), Independence Realty ( NYSE: IRT ), AvalonBay Communities ( NYSE: AVB ), Bluerock Residential Growth ( NYSE: BRG ), Camden Property ( CPT ), Apartment Income REIT ( AIRC ) and Veris Residential ( VRE ).
Earlier, as housing weakens, market tilts back to smaller Fed hike .
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U.S. median asking rents slow for second-straight month in July - Redfin