Mortgage payments aren’t the only thing rising; the average rent surged again in December by 14% hitting a new record of $1,877 per month. This represents the largest year-over-year recorded increase in the last four years.
Mortgage payments are growing due to a number of factors the first of which is the rising mortgage rates. But in addition, the shortage of available rental units plus the inability for builders to replenish supply compounded by building material shortages is creating a bottleneck for those individuals looking to rent or to buy.
According to the Redfin report these areas saw the largest increase and year-over-year rents:
Austin, TX increased 40%
Nassau County, NY increased 35%
Manhattan increased 35%
Newark, NJ increased 35%
New Brunswick, NJ increased 35%
Miami, FL increased 34%
Nassau County, NY, New Brunswick NJ, New York, NY, and Newark, NJ tied for the highest average monthly rental price of $3,718.