Rents rise to a record in August, led by Cincinnati and Pittsburgh, but growth continues to slow

Asking rents in the U.S. were still rising, and reached a record in August, but growth has slowed for a third-straight month, according to a report from online real estate services company Redfin Corp. RDFN, -0.57%. The national median rent reached $2,039 a month in August, up 11.1% from a year ago, but that was the smallest year-over-year increase in a year, and down from a peak increase of 19% in March. The metro areas with the fastest rent growth were Cincinnati at 26%, Pittsburgh at 22%, Indianapolis at 21% and Nashville, Tenn. at 20%. “Rent growth will likely slow further as the Federal Reserve continues to raise interest rates. Higher interest rates impact the rental market because they put a damper on spending power in the economy as a whole, including renters’ budgets,” said Redfin Deputy Chief Economist Taylor Marr. “Growth in rents is also likely to be slowed by a boost in rental supply.”