The average rent payment in the United States in October saw its biggest 12-month jump in at least two years, but outside of some hot metropolitan areas, the median mortgage payment rose more.
Rents rose an average of 13% year-over-year in October, while average monthly home loan spending with a 5% down payment rose 17%, according to online real estate broker Redfin. On a monthly basis, mortgage payments rose 3.2% and rents only rose 0.4%.
"The growth rates for mortgage payments and rents had converged, but an increase in mortgage rates and house prices caused mortgage payment growth to accelerate from September through October," Redfin said in a press release.
However, the average mortgage payment of $ 1,533 is still lower than the average rent ($ 1,858). And rents rose faster than mortgage payments in 29 of the 50 largest metropolitan areas in the United States. West Palm Beach, Fort Lauderdale, and Miami, Florida saw the highest rent increases at 36%, followed by Seattle, Washington and Jacksonville, Florida at 32%. Five other metros also recorded rent increases of over 30%.
"Rising rents in some of the world's most desirable cities suggest there is an overall shortage of apartments, not just apartments for sale," said Daryl Fairweather, chief economist at Redfin, in a press release. "The 'Build Back Better' bill currently debated by Congress includes $ 150 billion in affordable housing, which may at least partially address the problem, but the bottom line is that there is a lot more housing to be built. "The places that are growing the most."
Some large metropolitan areas saw rent increases below the national average, including Chicago, Illinois, 11%; Pittsburgh, Pennsylvania, 7%; and San Francisco, California, 7%. In one metropolitan area, St. Louis, Missouri, rents fell 4%.