Renters are lastly getting a break on their hire as costs drop. The median asking hire rose 1.7% yr over yr to $1,937 in February—the smallest improve in almost two years and the bottom stage in a yr, in line with a brand new report from Redfin. Rents have been up almost 10 instances that a lot (16.5%) a yr earlier.

February was the ninth straight month the place hire progress slowed on a year-over-year foundation. Rents fell 0.3% from a month earlier. Nonetheless, the median asking hire remained 21.4% greater than it was in February 2020, the month earlier than the coronavirus was declared a pandemic.

Hire progress has cooled as persistently excessive housing prices, inflation, recession fears and a slowdown in family formation have made folks much less prone to transfer, placing a damper on demand for brand new leases. A leap in provide because of a growth in condo building has additionally contributed to the slowdown in hire progress. The variety of residences underneath building is up 24.9% yr over yr to 943,000, the best stage since 1974, in line with a latest report from the Nationwide Affiliation of Residence Builders.

“Landlords are slowing their roll on hire will increase as a result of they’re grappling with an increase in vacancies as an inflow of recent residences hits the market and demand slows from its peak,” mentioned Redfin deputy chief economist Taylor Marr. “Rents are possible near hitting a flooring, although. That’s as a result of stubbornly excessive inflation is boosting bills for landlords, so as an alternative of dropping rents they might search to lure renters with different concessions, like free parking or a reduced safety deposit.”

Marr added, “Whereas hire progress has slowed, it hasn’t slowed fairly as a lot as anticipated—partly as a result of the labor market has held up higher than anticipated, which has helped prop up demand. That is possible a purpose general inflation stays stubbornly excessive, as hire progress is a serious contributor to inflation.”

Rents declined in 11 main metro areas

1. Austin, Texas (-6.5%)
2. New Orleans (-6.4%)
3. Phoenix (-4%)
4. Minneapolis (-3.5%)
5. Dallas (-2.6%)
6. Baltimore (-2.2%)
7. Houston (-1.9%)
8. Birmingham, Alabama (-0.5%)
9. Chicago (-0.5%)
10. Denver (-0.3%)
11. Virginia Seashore, Virginia (-0.2%)

Charlotte, North Carolina and Columbus, Ohio noticed the most important hire will increase

1. Charlotte, North Carolina (14.3%)
2. Columbus, Ohio (12.6%)
3. Milwaukee (9.5%)
4. Nashville (9.0%)
5. Indianapolis (8.5%)
6. Kansas Metropolis, Missouri (8.3%)
7. Hartford, Connecticut (6%)
8. Buffalo, New York and Windfall, Rhode Island (5.9%)
9. Cincinnati, Memphis and Louisville, Kentucky (5.5%)
10. Riverside, California; San Diego (5.3%)