ST. LOUIS, Mo. – Mortgage and rent payments have surged nationwide over the past year. Redfin, a tech-real estate firm, reports that rents are up 13 percent and mortgages are up 17 percent.
There is one outlier among major American cities bucking this trend. Rents fell 4 percent in St. Louis, and it was the only metro to see a decrease in rent in October compared to a year earlier.
Other major cities with rents growing slower than the national average are Chicago at 11%, Pittsburgh at 7% percent, and San Francisco at 7 percent.
Rents are up 30% in some cities. They are located in Florida, Washington State, Oregon, Texas, and New York.
Top 10 Metro Areas With Fastest-Rising Rents
- West Palm Beach, FL (36%)
- Fort Lauderdale, FL (36%)
- Miami, FL (36%)
- Seattle, WA (32%)
- Jacksonville, FL (32%)
- Portland, OR (31%)
- Austin, TX (31%)
- Newark, NJ (31%)
- Nassau County, NY (31%)
- New York, NY (31%)
Rents for U.S. single-family homes jumped 10.2% in September from a year earlier, according to real estate information company CoreLogic. The firm excludes apartments from its single-family home rental data, though it includes condominium and townhome rentals.
CoreLogic expects rents to continue climbing through at least the end of this year, citing strong demand, low supply of homes for rent and a strengthening job market.
Recent quarterly earnings from the nation’s two largest publicly traded owners of single-family houses for rent underscore the favorable outlook.
It is possible that inflation may be driven higher in the coming months by factors unrelated to the pandemic, such as higher rents and steady wage increases. Businesses, in turn, may raise prices to offset the cost of higher pay.
More dovish economists counter that the main cause of inflation isn’t a general overheating of the economy, which is normally why the Fed tightens credit. This time, they say, the main factor has been a shift among consumers to spend heavily on goods like furniture, appliances and cars, as the pandemic has kept people at home longer and has limited spending on services such as flying, eating out and attending movies and concerts.