New data from Redfin shows where America's housing market is cooling down, and where it's showing no signs of stopping.

Overall their assessment shows that rent increases slowed down in June 2022 after just a 14 percent year-over-year increase in median asking rent, the smallest since October last year.

• Rents in Cincinnati, Ohio, grew the highest among cities in the US with a 39 percent Y-O-Y increase in June.

• During the same time rents in Seattle (WA), Austin (TX) and Nashville (TN) all rose by more than 30 percent.

• Rents in New York City (NY), Nassau County (NY), New Brunswick, (NJ), Newark (NJ), Portland (OR) and San Antonio (TX) had rent increases ranging between 23 and 27 percent.

• Only three cities in America's 50 most populous areas had rent decreases in June: Milwaukee (12 percent), Minneapolis (seven percent) and Kansas City (less than one percent).

• Home purchases are also falling through with around 14.9 percent of the total, or 60,000, deals falling through in June.

The table above measures pending sales that fell out of contract as a percentage of overall pending sales, and is sorted from highest to lowest. A metro must have had at least 1,000 pending-home sales in June 2022 to be included

The slowdown in housing-market competition is giving homebuyers room to negotiate, which is one reason more of them are backing out of deals. Buyers are increasingly keeping rather than waiving inspection and appraisal contingencies. That gives them the flexibility to call the deal off if issues arise during the homebuying process.

Rising mortgage rates are also forcing some buyers to cancel home purchases. If rates were at 5% when you made an offer, but reached 5.8% by the time the deal was set to close, you may no longer be able to afford that home or you may no longer qualify for a loan.

[Redfin Deputy Chief Economist Taylor Marr]

Rent growth is likely slowing because landlords are seeing demand start to ease as renters get pinched by inflation. With the cost of gas, food and other products soaring, renters have less money to spend on housing.

This slowdown in rent increases is likely to continue, however rents are still climbing at unprecedented rates in strong job markets like New York and Seattle and in areas like San Antonio and Austin that soared in popularity during the pandemic.

[Redfin chief Economist Daryl Fairweather]

[Photo by Palo Cech]