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58 | 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 Rent Growth Moderates for Third Consecutive Month Redfin reports that while asking rents were up 11% in August, experts project rent growth will slow further in coming months, as the Fed continues to raise interest rates in addition to housing markets experiencing a swell in rental supply nationwide. R ent growth is likely to keep slowing as rising interest rates continue to cool the economy, as ask- ing rents climbed to a record high in August, while rent growth moderated for the third-straight month. According to a new report from Redfin, the national median asking rent was up 11% year-over-year to $2,039—the smallest annual increase in a year, down from a peak gain of 19% in March. On a month-over-month basis, the median asking rent climbed 0.4%, the slowest growth since December 2021 and down from a 1.6% increase a year earlier. "Rent growth will likely slow further as the Federal Reserve continues to raise inter- est rates," said Redfin Deputy Chief Economist Taylor Marr. "Higher interest rates impact the rental market because they put a damper on spending power in the economy as a whole, including renters' budgets." Top 10 Metro Areas With Fastest-Rising Rents Year- Over-Year 1. Cincinnati, Ohio (26%) 2. Pittsburgh, Pennsylvania (22%) 3. Indianapolis, Indiana (21%) 4. Nashville, Tennessee (20%) 5. Portland, Oregon (19%) 6. New York, New York (18%) 7. Newark, New Jersey (18%) 8. Nassau County, New York (18%) 9. New Brunswick, New Jersey (18%) San Antonio, Texas (17%) In Cincinnati, asking rents rose 26% year over year in August, the largest jump among the 50 most populous U.S. metropolitan areas. Pittsburgh, Indianapolis, and Nashville also saw increases of at least 20%. This was the first month since August 2021 that no metro area saw rents increase 30% or more from a year earlier. Metro Areas Where Rents Declined Year-Over-Year • Milwaukee, Wisconsin (-15%) • Minneapolis, Minnesota (-7%) • Jacksonville, Florida (-2%) • Baltimore, Maryland (-1%) Four of the 50 most populous metro areas saw rents fall in August from a year earlier, up from three in July. Rents de- clined 15% in Milwaukee, 7% in Minneapolis, 2% in Jacksonville, Florida, and 1% in Baltimore. Milwaukee and Minneapolis have seen declining asking rents since April. "Growth in rents is also likely to be slowed by a boost in rental supply," said Marr. There are nearly a million rental units under construction that will hit the market in the coming months and years."