Rent increases are slowing, but prices are up 20% in Jacksonville
The rate of rent increases across the nation slowed last month for the first time in a year, but rent in Jacksonville remains 20% higher than last year.
Rents nationally rose 15% last month, down from 17% the month before.
“The fact that rents are growing at a slower pace may be a very early sign that the Fed’s tactic of raising interest rates to quell inflation is working,” said Redfin Chief Economist Daryl Fairweather. “However, rents are still growing at nearly double the rate of overall inflation. Landlords in hot migration destinations like Austin, Portland and South Florida are charging new tenants 30% more than last year’s rent.”
Redfin's analysis uses data from more than 20,000 apartment buildings across the country. It represents the median asking price for rents, not the median that renters are currently paying.
Eighteen of 50 metro areas had larger rent increases than Jacksonville, according to Redfin. Miami, Fort Lauderdale and West Palm Beach all recorded increases over 30%, placing them among the five fastest-rising areas.
Jacksonville still appears to be a bargain compared with other parts of the country. The median rent price here — $1,647 — is the eighth-lowest of the 50 metro areas — and the lowest by far in Florida, according to Redfin.
That doesn't mean rents here are underpriced. A study earlier this month by Florida Atlantic University found that, despite the lower prices, rents in Jacksonville should be even lower based on historical trends. Jacksonville is the 13th most-overpriced market in the nation, the study found.
All five of the most overpriced metros in the U.S. are in Florida: South Florida, Fort Myers, Tampa, Sarasota-Bradenton and Port St. Lucie, in that order, the study said.
In Redfin's analysis, Austin, Texas, had the fastest-rising rent in America over the past year — 46%, the largest increase ever in Redfin's records.
Only three cities saw rents decline: Milwaukee; Kansas City, Missouri; and Minneapolis.