Here’s the average rent for one or two bedrooms in America

How much does it cost to rent a one- or two-bedroom apartment in the US? Rental prices have risen nationwide in the past two years since the COVID-19 pandemic, and the cost of renters remains high in August.

“Rentals have definitely gone up, and they’ve gone up significantly,” Rent.com researcher John Leakey told Fox TV stations this week.

The average cost of one bedroom in August 2022 is $1,769, up 39% from this time last year, according to a monthly Rent.com report.

Meanwhile, the nationwide average monthly cost of a two-bedroom rental in August is $2,105, a 38% increase from last year.

Leakey said rents have increased as housing prices have risen. As more find themselves out of home buying prices, there is more upward pressure in the rental market.

“I think what we’re seeing is a peak in the housing market where people are saying, ‘It’s too expensive, I can’t afford it. Mortgage rates are very uncertain,” so they are either remaining renters, or they are “reselling now and on the rise but have decided they don’t want to buy until the type of market stabilizes or goes down,” explained Leakey.

What are the most expensive cities for renters?

While average rental prices nationwide are on the rise, not all regions of the United States are equally divided when it comes to higher rents. The majority of the cities with the highest rents (58%) are on the West Coast, according to a separate report from Rent.com showing the top 100 most expensive cities for renters.

Of the 100 largest US cities, 41% are in California. Another 28% of the most expensive cities for renters are in the South – and the majority of Southern cities (57%) are in Florida. Many are also located in or near major technology hubs, making rents high and apartments low supply due to the industry’s high salaries and continued growth during the pandemic, according to the report.

The Northeast had only 13% of the 100 highest rent cities in the United States, including Bayonne, New Jersey, Boston, Cambridge, and Quincy, Massachusetts.

Only one city in the Midwest made the list of the top 100 most expensive rentals: Chicago (#46 – $2,904 on average).

Jersey City, New Jersey, Which is across the Hudson River from Manhattan, ranked as the first city for the highest rent in the United States during the survey period (Manhattan was excluded from Rent.com’s ranking). The median monthly rent in Jersey City increased from $3,308 in 2021 to $5,500 in 2022, according to the report — a 66.25% increase.

Boston It ranked second as the average rental price jumped from $4,164 in 2021 to $4,878 in 2022 – a 17.14% increase in annual rent.

California cities Palo Alto ($4,672), Glendale ($4,472) and Santa Monica ($4,357) of the top five.

On the opposite extreme, here are the top 10 US cities identified as having the cheapest median rent:

The map shows the 10 largest US cities identified as having the lowest average monthly rent as of June 2022. Only cities with populations of 50,000 or more are included. (credit: FOX TV Stations)

Need to make the amount?! Low-wage workers have run out of housing

Meanwhile, a recently published report by the National Low-Income Housing Coalition (NLIHC), a housing advocacy group, revealed the disparity between low-income hourly wages and the average cost of two-bedroom rent in all 50 states.

The Out of Access 2022 report shares an estimate of the hourly wage a full-time worker must earn to buy a rented home, without spending more than 30% of their income, the so-called “housing wage.” It also uses the US Department of Housing and Urban Development’s Fair Market Rent, which is an estimate of what a person moving today can expect to pay for a modest rental home.

In 2022, the report states that a full-time worker should earn $25.82 per hour to bear modest Two bedroom house for rent, under the mentioned factors. He adds that in order to buy a modest one-bedroom rental home – without spending more than 30% of their income – they must earn $21.25 an hour.

“The federal minimum wage of $7.25 per hour is significantly lower than the national two-bedroom housing wage. The wage for two-bedroom housing is more than 3.5 times the federal minimum wage of $7.25,” according to the report. .

There is no state, metropolitan area, or county in the United States where a worker earning the federal minimum wage—or the prevailing state or local minimum wage—can afford a modest two-bedroom rental home at HUD’s fair market rent by working to a standard HUD. 40- working hours per week, according to the report.

Moreover, these workers cannot afford a modest one-bedroom apartment in 91% of US counties, the report adds.

Related: This is how much money you need to make an hour to afford rent in California

When will the US rental market decline?

7fd8a02b Rents rebound in San Francisco after the epidemic-related decline

FILE PHOTO – A “For Rent” sign is placed in front of an apartment building on June 2, 2021 in San Francisco, California. (Photo by Justin Sullivan/Getty Images)

At the beginning of the pandemic, the rental market was hit. Leakey explained that prices remained low until around August 2021, when “we started seeing a sharp rise” in many parts of the country.

“I think we’re starting to sort of stabilize,” Leakey told Fox TV Thursday. “Hopefully in the near future, maybe at the end of summer, kind of early fall, you’ll start to see prices start to moderate where these annual changes won’t be as extreme.”

“The basic level prices will be higher than they were before, but the changes from year to year will hopefully be a little less,” he added.

This story was reported from Cincinnati.

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