Think that rent can’t get any higher? Well, think again.
Rent in the U.S. reached an all-time median high in April 2022 and is only expected to keep rising to a record average of $2,000 per rental unit by August, according to a recent report from Realtor.com
New data reveals the current national average rent is $1,827 a month, up 16.7% from a year ago. The data also broke down the average rent by the number of bedrooms, determining that the price for a studio apartment is growing the fastest of all rental units. In the U.S., a studio will cost you $1,499 each month — another record high — with the average two-bedroom will cost you around $2,552 per month.
“April data illustrates the perfect storm of supply and demand dynamics behind the continued rent surge, from a low number of available rentals to higher for-sale housing costs forcing many would-be buyers to rent for longer than planned,” said Realtor.com Chief Economist Danielle Hale.
“Renters are being left with few options but to meet higher rents and, in some cases, even offer above asking – whether they can afford to or not. Avail’s new survey shows rents are not only maxing out renters’ housing budgets but are the biggest strain on their overall finances, even as inflation drives up expenses across the board. This will be especially important as, if recent trends continue, we expect the typical U.S. asking rent to eclipse $2,000 by August.”
Florida cities lead the nation in rent increase average
Data reveals three Florida metro leading the charge in nationwide rent. Rent in Miami was up 51.6% from April of last year, with Orlando (32.9%) and Tampa (27.8% following close behind. A recent analysis of cross-market search demand has shown that homebuyers are increasingly interested in relocating to the Sun Belt, and this migration trend has made its way into the rental market as well.
Bay Area rental rates among the highest in nation
According to Realtor.com, the Bay Area ranks among the top region with the highest renal rates. The overall median rent comes in at $3,000 per month in the San Francisco-Oakland-Hayward area and an average of $3,165 monthly rent for the San Jose-Sunnyvale-Santa Clara area.