For anyone who lives in one of the major nationwide rental markets including New York City, San Francisco and Boston, the percentage of income spent on rental housing has been ever-increasing!
But have these living expenses elsewhere around the United States grown as steeply and as quickly?
The Zumper National Rent Report and Zumper National Rent Price Index provides some answers.
Our analysis reveals that U.S. rental prices have appreciated significantly, with a 4.3% and 4.5% year to date increase in one and two bedroom unit prices, respectively. While one and two bedroom rents have followed a similar trend nationwide, there is a slight lag in the timing of the major price increases: two bedroom units prices jumped 1.3% in March, but one bedroom units did not see a comparable price increase until April.
This July, the national median price of one bedroom units grew 0.8% on the month to reach $1,158. In contrast, two bedroom rents only increased 0.1%, settling at a median price of $1,369.
Top Five Rental Markets
1. San Francisco, CA continued to see a decline in median one bedroom prices, which dropped -1.4% to $3,460. Two bedroom prices remained fairly stable, increasing just 0.4% to settle at $4,790. While San Francisco remains the most expensive market in the U.S. by a significant margin, our analysis suggests that San Francisco rents have flattened and are beginning to decline.
2. New York, NY saw mixed trends in July, with one bedroom prices increasing 0.3% to $3,200 but two bedroom prices decreasing -1.7% to $3,540. The slight convergence of one and two bedroom prices this month follows the long-term trend: one bedroom units are up 3.2% year over year, while two bedroom units are down -1.7%.
3. Boston, MA jumped up two places in our July rankings, overtaking San Jose and Oakland to once again become the third most expensive rental market across the nation. One bedroom units continued to command a median price of $2,230, while two bedroom unit prices fell -2.7% to $2,530.
4. San Jose, CA came in just behind Boston, after a sharp -2.6% decrease in one bedroom unit prices to $2,220. Two bedroom units also saw a slight dip in prices, decreasing -0.7% to $2,880. This parallels trends in San Francisco and the wider Bay Area.
5. Oakland, CA dropped to fifth place in our rankings, thanks to the -2.6% and -1.8% decline in median one bedroom and two bedroom rent prices, respectively. Despite this drop, one bedroom prices still rose 11.6% on the year to $2,210 and two bedrooms rose 13.8% on the year to $2,730.