Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
SEATTLE - The median asking rent in the United States increased 1.7% year over year to $1,790 in July, marking the largest annual gain since January 2023, according to a report from real estate brokerage Redfin (NYSE:RKT). The company, currently valued at over $41 billion, has seen its stock surge more than 84% year-to-date, though InvestingPro analysis suggests the stock is trading above its Fair Value.
July represented the second consecutive month of year-over-year rent increases following more than two years of declining or flat rental prices. The median asking rent also rose 0.8% from the previous month. This market recovery aligns with Redfin’s own business growth, as the company reports revenue growth of 6.75% over the last twelve months.
San Jose and Chicago experienced the most significant rent increases among major metropolitan areas, with jumps of 8.8% and 8.6% respectively. Washington, D.C. (8.5%), Pittsburgh (7.7%), and Philadelphia (7.5%) rounded out the top five markets for rent growth.
Conversely, seven metros saw declining rents, with Jacksonville, Florida posting the largest decrease at 3.5%, followed by Austin, Texas at 2.6%.
Redfin Senior Economist Sheharyar Bokhari attributed the rising rents to shrinking apartment supply coinciding with increased renter demand, partly driven by high homeownership costs. The report noted that permits for multifamily housing have fallen 23.1% since the pandemic construction boom.
By unit size, asking rents for 0-1 bedroom apartments increased 3.4% year over year to $1,650, while 2-bedroom units rose 1.7% to $1,907. In contrast, rents for 3+ bedroom apartments declined 1.5% to $2,192.
Despite the recent increases, the median asking rent remains $70 below the record high of $1,860 set in July 2022. The report also indicated that wage growth is outpacing rent increases, suggesting improving rental affordability.
The findings are based on data for units in buildings with 25 or more units, using information from Zillow for the three months ending July 31, 2025. For investors seeking deeper insights into Redfin’s performance and outlook, InvestingPro offers exclusive analysis and 12 additional ProTips, including detailed financial health metrics and growth forecasts. The platform’s comprehensive Pro Research Report provides in-depth analysis of Redfin among 1,400+ top US stocks.
In other recent news, Rocket Companies has been the focus of several notable developments. Keefe, Bruyette & Woods raised its price target for Rocket Companies to $15.00, up from $14.00, while maintaining a Market Perform rating. The adjustment follows Rocket’s third-quarter guidance and revised earnings estimates, with forecasts of $0.11 EPS for 2025, $0.70 for 2026, and $0.97 for 2027. Meanwhile, Morgan Stanley resumed coverage of Rocket Companies with an Equalweight rating and set a price target of $16.00, citing a less compelling risk-reward profile after a significant share rally. Citron Research has also weighed in, stating that Rocket Companies is not a meme stock, highlighting its strategic positioning in the mortgage sector. Additionally, Rocket Companies has appointed Viral Nation as its social media agency of record to enhance its presence across social media platforms. These developments come amid a broader rally in homebuilder and mortgage stocks, influenced by weaker-than-expected jobs data and expectations of Federal Reserve interest rate cuts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.