Money & The Economy

Rent Prices for Two and Three-Bedroom Homes Rising Fast

Monthly rent for two and three-bedroom homes are appreciating 2.8 percent annually, which is faster than one-bedroom homes and the nation as a whole

  • Rent growth among two and three-bedroom homes are appreciating faster than one-bedroom units and the nation as a whole
  • Rent prices rose 2.8 percent over the past year among both two-bedroom and three-bedroom homes. Median rent for a two-bedroom apartment is $1,310, and $1,445 per month for a three-bedroom
  • Renters looking for a one-bedroom can expect to pay $1,275 per month, up 2.2 percent over the past year

Renters searching for a new home this summer can expect higher prices than last year, particularly among two and three-bedroom rentals, according to the latest quarterly HotPads® Rent Reporti. Rent among two and three-bedroom homes is appreciating slightly faster than one-bedroom homes in U.S. metros with more new apartment construction.

Rent prices rose 2.8 percent over the past year among both two-bedroom and three-bedroom rentals. Renters can expect to pay $1,310 per month for a two-bedroom unit and $1,445 per month for a three-bedroom unit.

Finding an affordable rental may be a bit easier for those searching for a one-bedroom rental this year. Renters can expect to spend about $1,275 per month for a one-bedroom unit, up 2.2 percent over the past year.

Overall, median rent in the U.S. is $1,480, up 2.5 percent from a year ago. As rent continues to rise, it’s becoming more difficult for renters to keep up with costs. With rent among two and three-bedroom rentals rising the fastest, renters who need more space face an even tighter affordability crunch.

“Rent growth has mellowed out to a steady rate recently, but overall prices are still high compared to recent years,” said Joshua Clark, economist at HotPads. “Two and three-bedroom rentals are seeing the fastest pace of price growth this year, usurping one-bedrooms as the fastest-appreciating segment of the rental market in April 2018. New apartment construction tends to focus on studios and one-bedrooms, so the additional supply of smaller units has eased price pressures in that market segment. Renters looking for a larger apartment or home – including young families – should expect faster rent growth this year.”

In Baltimore, Washington, D.C., and Austin – all markets that have seen substantial new apartment construction in recent years – median rent for a two or three-bedroom home is appreciating about twice as fast as a one-bedroom home. Median rent for two and three-bedroom homes in Chicago and San Antonio are also appreciating quickly, more than 80 percent faster than one-bedroom rents.

Though two and three-bedroom rents are appreciating quickly, the financial incentives for living with a roommate remain strong. Sharing a two-bedroom rental with one person is still about half the cost of renting a solo one-bedroom unit.

HotPads is a Zillow® Group-owned apartment and home search platform for renters in urban areas across the United States. For more information on the U.S. rental market, visit HotPads.com.

One-Bedroom

Two-Bedroom

Three-Bedroom

All Rentals

Metropolitan
Area

Median
Rent

YoY
Change

Median
Rent

YoY
Change

Median
Rent

YoY
Change

Median
Rent

YoY
Change

United States

$1,275

2.2%

$1,310

2.8%

$1,445

2.8%

$1,480

2.5%

New York, NY

$2,020

0.9%

$2,100

1.0%

$2,505

1.3%

$2,350

1.1%

Los Angeles, CA

$2,090

4.7%

$2,425

4.3%

$2,760

3.9%

$2,860

4.3%

Chicago, IL

$1,535

1.2%

$1,535

2.2%

$1,685

2.2%

$1,765

1.9%

Dallas, TX

$1,040

2.5%

$1,160

3.1%

$1,550

3.6%

$1,650

3.3%

Philadelphia, PA

$1,365

2.0%

$1,505

2.0%

$1,515

2.5%

$1,655

2.1%

Houston, TX

$975

2.6%

$1,120

1.9%

$1,450

2.5%

$1,575

2.2%

Washington, DC

$1,790

0.6%

$1,910

1.4%

$2,130

2.0%

$2,155

1.3%

Miami, FL

$1,410

1.5%

$1,665

2.2%

$2,110

2.7%

$2,000

2.2%

Atlanta, GA

$1,330

4.7%

$1,225

5.8%

$1,325

5.5%

$1,435

5.1%

Boston, MA

$1,895

2.0%

$2,060

3.5%

$2,470

4.0%

$2,390

3.3%

San Francisco, CA

$2,445

2.2%

$3,005

3.7%

$3,340

4.0%

$3,425

3.5%

Detroit, MI

$1,090

4.5%

$1,260

3.1%

$1,435

3.8%

$1,275

3.6%

Riverside, CA

$1,245

6.9%

$1,560

6.7%

$1,840

5.5%

$1,915

5.8%

Phoenix, AZ

$1,130

6.4%

$1,350

5.8%

$1,410

5.7%

$1,450

5.4%

Seattle, WA

$1,760

4.1%

$1,955

5.5%

$2,135

5.7%

$2,210

5.0%

Minneapolis, MN

$1,255

3.6%

$1,505

3.8%

$1,650

3.9%

$1,650

3.9%

San Diego, CA

$1,805

5.7%

$2,225

5.3%

$2,590

4.7%

$2,650

4.9%

St. Louis, MO

$880

2.1%

$975

2.0%

$1,280

1.7%

$1,190

2.0%

Tampa, FL

$1,095

5.5%

$1,260

5.1%

$1,435

3.3%

$1,445

4.5%

Baltimore, MD

$1,380

0.4%

$1,500

1.3%

$1,780

2.5%

$1,745

0.8%

Denver, CO

$1,355

3.2%

$1,825

4.4%

$2,080

3.9%

$2,085

3.9%

Pittsburgh, PA

$905

1.9%

$975

1.7%

$1,140

1.7%

$1,090

1.7%

Portland, OR

$1,550

2.1%

$1,750

3.1%

$1,895

3.7%

$1,920

3.0%

Charlotte, NC

$1,110

3.6%

$1,015

4.5%

$1,315

4.2%

$1,360

3.9%

Sacramento, CA

$1,400

8.7%

$1,695

8.2%

$1,785

6.2%

$1,925

7.4%

San Antonio, TX

$865

1.3%

$975

2.3%

$1,270

2.7%

$1,370

2.3%

Orlando, FL

$950

5.9%

$1,200

6.0%

$1,460

4.8%

$1,485

5.3%

Cincinnati, OH

$885

3.2%

$985

3.5%

$1,200

2.9%

$1,210

3.0%

Cleveland, OH

$925

2.8%

$1,045

2.5%

$1,165

2.0%

$1,190

2.0%

Kansas City, MO

$890

3.9%

$905

3.6%

$1,175

3.2%

$1,245

3.3%

Las Vegas, NV

$960

6.9%

$1,150

6.6%

$1,330

5.3%

$1,375

5.7%

Columbus, OH

$975

4.0%

$1,105

3.9%

$1,350

3.6%

$1,400

3.4%

Indianapolis, IN

$875

3.0%

$895

3.9%

$1,210

3.2%

$1,230

3.4%

San Jose, CA

$2,565

3.0%

$3,130

2.7%

$3,530

2.9%

$3,635

3.1%

Austin, TX

$1,350

0.8%

$1,655

1.6%

$1,725

1.8%

$1,725

1.2%

 

Carl Fox

Carl Fox is the senior money and finance writer for Conservative Daily News. Follow him in the "Money & The Economy" section at CDN and see his posts on the "Junior Economists" Facebook page.

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