The median U.S. asking rent rose 1.1% year over year to $1,964 in January, the largest annual increase since March 2023, according to Redfin. However it was unchanged from a month earlier and given all indications it does not appear likely to rise any time soon.
The pandemic moving frenzy is over and landlords are grappling with vacancies due to a jump in apartment supply. Demand should remain solid, however, because buying a home is not gaining traction in this economic environment, the online brokerage said, keeping renting as a lifestyle choice alive and well.
"There's not a huge incentive for renters to buy right now," Redfin Chief Economist Daryl Fairweather said in prepared remarks. "Asking rents are stable, and while mortgage rates have dipped in recent months, they haven't fallen enough to make the financial equation of homebuying feasible for many people.
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