MReport November 2021

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52 | M REPORT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Sunshine State Migration Forces Rise in Home, Rental Rates Three Florida metros saw a 36% gain in rent prices, as more continue to escape expensive northeast metros in favor of southern markets. A ccording to a new report from Redfin, the average monthly rent payment increased 11% nationwide over the past year, the highest growth rate in at least two years. Keeping pace with this rise in rent was the national me- dian monthly mortgage payment, climbing 15% since September 2020, marking the eighth consecutive month that growth in median mortgage payments for new home- buyers has outpaced that of rents. Redfin's analysis found that rent price increases surpassed mortgage payments for new homebuy- ers in 26 of the 50 largest metro areas in the United States during September. The metro areas with the big- gest increases in rent prices were clustered in southern Florida where people have been flocking to escape more expensive metros in the northeast, as rents were up the most from a year earlier in Fort Lauderdale, Miami, and West Palm Beach, which all saw rents go up 36%. "Florida is seeing some of the largest increases in rents thanks to migration from remote workers who previously lived in cities like New York or San Francisco," Redfin Chief Economist Daryl Fairweather said. "Because out- of-towners typically rent before buying, this migration is likely driving a larger spike in demand for rentals compared to homes for sale. Florida also has some of the highest climate risks in the coun- try from sea-level rise, storms, and heat. So, renting may be particularly attractive to residents who don't want to make a long- term bet on the Florida housing market." The top 10 metros with the fastest-rising rents include: • Fort Lauderdale, Florida (+36%) • Miami, Florida (+36%) • West Palm Beach, Florida (+36%) • Tampa, Florida (+34%) • Seattle, Washington (+27%) • Nassau County, New York (+27%) • New Brunswick, New Jersey (+27%) • New York, New York (+27%) • Newark, New Jersey (+27%) • Orlando, Florida (+26%) Only one metro area saw a decrease in rent in September compared to a year earlier, with rents falling a slight 1% in Pittsburgh, while rents were flat from a year ago in the St. Louis, Missouri, metro. Rents and Homebuyer Mortgage Payments Both Rising Sharply in 2021

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