Mortgage funds for brand new homebuyers exceed rental charges for the seventh consecutive month

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Monthly mortgage payments for U.S. homebuyers are growing 67% faster than rental rates, according to Redfin.

This is the seventh straight month that average mortgage payment increases for new homebuyers outpaced rent increases, according to the latest report from Redfin.

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In August, this trend emerged in 25 of the country’s 50 largest metropolitan areas, despite “interest rates falling back to near record lows,” according to the technology-based real estate brokerage firm.

Still, the average nationwide monthly rent – which is around $ 1,836 – is still higher than the average monthly mortgage payment for new homebuyers, which is around $ 1,494.

Apartment for rent sign. (iStock / iStock)

“Record house price growth has deterred many tenants from buying, so many face higher rents this summer as more households move thanks to the rise in remote and flexible work arrangements,” said Redfin Chief Economist Taylor Marr.

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And as the pandemic eviction moratoria and mortgage deferral expire, landlords can “increase rents to cover the risk of future tenant protection or to compensate for lost rental income,” added Marr.

The top spots across the country with the fastest rising rents were in warmer but affordable destinations, particularly Florida, California, and Arizona. All of the above states “benefited from an increase in migration thanks to a new mobile workforce,” said Redfin.

However, rents are not rising everywhere. In fact, Pittsburgh, Pennsylvania, San Jose, California, and St. Louis, Missouri all saw rental rates down 5%, 3% and 1%, respectively.

Here are the top 10 metropolitan areas with the fastest rising rents, according to the Redfins report:

1. Tampa, Florida (29.2%)
2. West Palm Beach, Florida (28.9%)
3. Miami, Florida (28.9%)
4. Fort Lauderdale, Florida (28.9%)
5. Jacksonville, Florida (26.8%)
6. Riverside, California (23.1%)
7. Phoenix, Arizona (21.9%)
8. Las Vegas, Nevada (21.3%)
9. New York, New York (21.3%)
10. Newark, New Jersey (21.3%)