Prices are rising the fastest for two-bedroom and three-bedroom apartments, according to a new rent report, and tenants should expect to see higher prices this summer than last.
Rent among two and three-bedroom homes is appreciating slightly faster than one-bedroom homes in U.S. metros with more new apartment construction, according to a release from the Zillow affiliate HotPads® Rent Reporti.
Prices rising for apartments
- 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.
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,” Joshua Clark, economist at HotPads, said in a release.
“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,” he said.
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.