As of February 1, average one- and two-bedroom rentals are up 13% and 16%, respectively, since February 2019, according to Zumper’s National Index, which tracks the top 100 rental markets in the United States.
However, one-bedroom rents exceeded two-bedroom rents for the second month in a row, with a new all-time high average of $1,393. Overall, one-bedroom prices are up 1.4% as of February 1.
Based on the average rental price, here are the 25 most expensive cities for one-bedroom apartments:
Rising rents are linked to an overheated housing market, where pent-up demand and declining home construction have set record home prices. This has priced out potential homebuyers and forced them to stay in the rental market, putting upward pressure on rental prices.
Rents for one- and two-bedroom apartments have increased at roughly the same rate over the past year, but one-bedroom unit price increases have been slightly higher in the past couple of months.
“While more rentals will come online in 2022 than in previous years, the chronic housing shortage in the country that began after the 2008 financial crisis is not a problem that can be solved overnight,” wrote Jeff Andrews, author of the Zamper study. .
“In addition, housing prices are expected to continue to rise, which will keep more high-income tenants in the rental market,” Andrews wrote.
Andrews also says that in the areas of the country where inflation is the most, rental rates have followed suit.
Last year, inflation, according to the Consumer Price Index, was highest in Atlanta (9.8%), Phoenix (9.7%), and Tampa (9.6%). In that time, these same areas have seen high rental growth, with increases of about 30% year over year. Miami, which also experienced high inflation (7.1%), leads the group of rent increases, with one-bedroom rents up nearly 35%, compared to this time last year.
It’s worth noting that rental prices in February also fell in more than 30 markets, likely due to the slower winter. But those drops don’t offer much comfort as average prices for one-bedroom apartments have risen by an average of 13% in the past year.
Andrews writes: “Whether rent can continue to rise at this pace throughout 2022 is anyone’s guess, but the economic fundamentals that have pushed rents up won’t go away any time soon.”
The 10 Fastest Growing Jobs of the Next Decade – And How Much They Pay
This graph shows the six stages of career growth. Where are you now?
Open an account now: Get smarter about your finances and career with our weekly newsletter