Rents are rising fastest in these 10 US cities, data shows

New York City ranked among the 10 metro areas with the sharpest spike in rent costs in September, according to national rental market data published this week.

Of the 50 most populous US metro areas, Oklahoma City, Okla., outpaced all others with a whopping 24.1% spike in median asking rent prices in September compared to the same month one year earlier, the latest report from real estate firm Redfin said.

Pittsburgh ranked second on the list with a 20% increase, followed by Indianapolis. At 17.9%; Louisville, Ky, at 17.5% and Nashville, Tenn., at 17%.

Cincinnati ranked sixth on the list of fastest-rising rents with a 16.5% increase, while Raleigh, NC, was seventh at 16.4%.

New York City ranked eighth on the list, with the median asking rent price jumping 15.4% year-over-year. NYC also owns the highest median asking rent, which hit $4,176 last month.

Portland, Ore., and San Antonio, Texas, rounded at the top 10 list with increases of 14% and 12.5%, respectively.

Steeper rent costs have hammered consumers and contributed to decades-high inflation that hit 8.2% in September. However, there are signs that the red-hot prices are starting to cool off as Americans delay planned moves to avoid the market crunch.

Overall, the median US asking rent rose 9% to $2,002 in September compared to one year earlier, according to Redfin. That increase, while substantial, marked a significant slowdown compared to as recently as March, when rents jumped by 18%.

“The rental market is coming back down to earth because high rents and economic uncertainty have put an end to the pandemic moving frenzy of 2020 and 2021, when remote work fueled an enormous surge in housing demand that would’ve otherwise been spread out over the coming years,” said Redfin Deputy Chief Economist Taylor Marr. 

“We expect rent growth to slow further into 2023 as Americans continue to hunker down and more new rentals hit the market,” Marr added.

Still, the slowdown has yet to provide much relief to US renters. Just five of the top 50 cities posted declines in rent costs in September: Milwaukee, Minneapolis, Baltimore, Houston and Chicago.

Increased shelter costs contributed to more than 40% of the increases to inflation reflected in the September Consumer Price Index, according to the Bureau of Labor Statistics. However, rents and other forms of shelter are included in that data set on a lagging basis, meaning last month numbers likely did not reflect current conditions.