(NewsNation) — Rental costs in the U.S. hit record rates over the summer due to inflation. Now, rental prices are starting to slowly plateau.
New data from Redfin shows the average cost of rent has begun to level out, and some experts say this trend could continue.
The national median asking rent was up 11% from August 2021 to August 2022, increasing the average rent to more than $2,000, according to Redfin’s report. And that was the smallest increase in more than a year.
“Rents may come down in some areas, but I want to stress again it doesn’t mean the market is crashing,” Jacob Channel, senior economist at LendingTree, said.
Even though rates have leveled out, renters in some cities may not feel relief anytime soon.
According to a recent report from Dwellsy, cities such as New York City, Boston, San Francisco, San Jose, California, and Austin, Texas, have averaged the highest August rent asking prices this year. The data shows that the median asking rent is up more than 86% to nearly $3,000 as the average rent per month.
“The only way I can see rents actually declining and becoming affordable is if we see a jump in unemployment and that would be caused by a recession,” said Jonathan Miller, president and CEO of Miller Samuel Appraisers.