For the first time in a year, the median U.S. rent increased by 1.1% in April, according to Redfin. Rent increases in the Midwest and Northeast have contributed to the change, while rents in most cities of the Sun Belt have decreased.
The Sun Belt and Seattle saw an increase in the housing supply, contributing to the drop in rent in those areas. In the Midwest, construction has been slower so rents have gone up.
Out of all the U.S. metro cities, Seattle had the biggest drop in rent at 7.3%. Minneapolis saw the biggest rent increase at 10.3%.
Reports show that multifamily-rent decreased year over year in April by 0.85%, while single-family rents increased by 3.4% in March.
“The continued strength overall in single-family rents indicates that potential homebuyers who are priced out of the home-purchase market are choosing to rent similar alternatives,” according to Molly Boesel, principal economist for CoreLogic. “With mortgage rates rising back up to 7% and home prices still increasing, buying a home is only more difficult.”