Rent prices in the US are just shy of notching a new all-time high
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- Rents came close to touching a new record last month, Redfin data shows.
- The US median asking rent price rose to $2,052 last month, just below the all-time-high of $2,054.
- Similar to the buyers' market, the rental market is tight as tenants compete for limited available units.
Rent prices came close to hitting a new record last month, a sign that the US rental market is still hot.
The US median asking rent price rose to $2,052 in August, a 0.7% from July rent prices, the firm said in its latest Rental Market Tracker report. That's just $3.00 away from notching a new all-time-high, which was recorded in August of last year, the real estate listing site said.
It's also not that much cheaper than the median mortgage payment for a single family home, which clocked in at $2,161 in July, per the latest Mortgage Bankers Association data.
Rents are so expensive that more landlords now are offering concessions – typically, a one to three month period of free rent – in a bid to attract more tenants to their properties, the report added. That practice was relatively uncommon until the rental market began to heat up dramatically over the past year, according to Jon Ziglar, the chief executive officer of Redfin's rental subsidiary.
"We are still seeing a lot of competition for more affordable units due to less new supply, as well as increased pressure on consumer wallets limited the ability to stretch for that higher level experience," Ziglar said statement on Wednesday.
Still, annualized rent increases have cooled down significantly compared to last year. Rents slipped 0.1% year-over-year last month, Redfin data shows, well below the 12.3% annual increase recorded in August 2022.
Rents have also started to cool in some regions of the US, and there are signs that trend could continue, Redfin economists said in a previous note. That's because more homeowners are opting to rent out their properties to potential tenants, as many are waiting for mortgage rates to ease before selling their homes.