Greater Cincinnati rents rising 4th fastest in the nation
New apartment supply is expected to set a record in the Queen City in 2022.
CINCINNATI (WXIX) - Greater Cincinnati is home to the hottest rental market in the Midwest, as local rents increased at the fourth-fastest rate in the country over the last year, according to data from real-estate brokerage Redfin.
See full list at the end of this story.
Tri-State rents leapt 32 percent in the year preceding May 2022, putting the Queen City in league with Nashville and Seattle, both of which also saw year-on-year increases of 32 percent.
The fastest-rising rents are in Austin, which saw a 12-month increase of 48 percent.
Just three of the 50 most populous metro areas saw rents fall in May from a year prior: Milwaukee, Kansas City and Minneapolis.
Greater Cincinnati’s median asking price of $1,713 remains comparatively low among the 50 metropolitan areas surveyed.
It’s also well below the median national asking price, which surpassed $2,000 in May 2022, a 15 percent annual increase.
Redfin Deputy Chief Economist Taylor Marr says the increase is because more people are choosing to live alone and rising mortgage interest rates are forcing would-be homebuyers to keep renting.
“These are among the demand-side pressures keeping rents sky-high. While renting has become more expensive, it is now more attractive than buying for many Americans this year as mortgage payments have surpassed rents on many homes. Although we expect rent-price growth to continue to slow in the coming months, it will likely remain high, causing ongoing affordability issues for renters,” Marr said.
Data from market analytics firm RealPage show relatively little slack in Midwestern rental markets like Cincinnati, which got through the pandemic without ever seeing a decrease in median rents.
But Cincinnati is building more multifamily buildings as well. From March 2021-March 2022, according to the data from the US Census Bureau, Cincinnati saw a 124 percent rise in multifamily construction permits.
New apartment supply is expected to set a record in the Queen City in 2022. The market will see more than 3,500 new units this year, compared to about 1,000 new units in 2021.
The gains will be spread out as well, according to RealPage. Seven of the Tri-State’s nine submarkets will get at least 300 new units.
Metro Areas With Fastest-Rising YOY Rents (median asking price):
- Austin, TX (48 percent increase; $2,707 median asking rent)
- Nashville, TN (32 percent increase; $2,141 median asking rent)
- Seattle, WA (32 percent increase; $3,097 median asking rent)
- Cincinnati, OH (32 percent increase; $1,713 median asking rent)
- Miami, FL (29 percent increase; $3,157 median asking rent)
- Fort Lauderdale, FL (29 percent increase; $3,157 median asking rent)
- West Palm Beach, FL (29 percent increase; $3,157 median asking rent)
- New York, NY (24 percent increase; $4,008 median asking rent)
- Nassau County, NY (24 percent increase; $4,008 median asking rent)
- New Brunswick, NJ (24 percent increase; $4,008 median asking rent)
- Indianapolis, IN (20.4 percent increase; $1,471 median asking rent)
- Cleveland, OH (9.6 percent increase; $1,477 median asking rent)
- Columbus, OH (9 percent increase; $1,627 median asking rent)
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