August is a popular moving month for renters—new school year, new job, new beginnings—and as a result, rent prices are normally on the rise. Our friends over at Zumper created this National Rent Report: August 2016 with everything you need to know about rental market trends and changes during this time of year. No surprise that Los Angeles was in the Top 10, but you may be surprised to see what cities surpass our high rent prices. We thought we’d share some of the key highlights from Zumper’s report that will benefit you if you’re looking to move in the next month or two:
Our analysis reveals that U.S. rental prices have appreciated significantly, with a 4.3% and 4.5% year to date increase in one and two bedroom unit prices, respectively. While one and two bedroom rents have followed a similar trend nationwide, there is a slight lag in the timing of the major price increases: two bedroom units prices jumped 1.3% in March, but one bedroom units did not see a comparable price increase until April.
This July, the national median price of one bedroom units grew 0.8% on the month to reach $1,158. In contrast, two bedroom rents only increased 0.1%, settling at a median price of $1,369.
Top Five Rental Markets
1. San Francisco, CA continued to see a decline in median one bedroom prices, which dropped -1.4% to $3,460. Two bedroom prices remained fairly stable, increasing just 0.4% to settle at $4,790. While San Francisco remains the most expensive market in the U.S. by a significant margin, our analysis suggests that San Francisco rents have flattened and are beginning to decline.
2. New York, NY saw mixed trends in July, with one bedroom prices increasing 0.3% to $3,200 but two bedroom prices decreasing -1.7% to $3,540. The slight convergence of one and two bedroom prices this month follows the long-term trend: one bedroom units are up 3.2% year over year, while two bedroom units are down -1.7%.
3. Boston, MA jumped up two places in our July rankings, overtaking San Jose and Oakland to once again become the third most expensive rental market across the nation. One bedroom units continued to command a median price of $2,230, while two bedroom unit prices fell -2.7% to $2,530.
4. San Jose, CA came in just behind Boston, after a sharp -2.6% decrease in one bedroom unit prices to $2,220. Two bedroom units also saw a slight dip in prices, decreasing -0.7% to $2,880. This parallels trends in San Francisco and the wider Bay Area.
5. Oakland, CA dropped to fifth place in our rankings, thanks to the -2.6% and -1.8% decline in median one bedroom and two bedroom rent prices, respectively. Despite this drop, one bedroom prices still rose 11.6% on the year to $2,210 and two bedrooms rose 13.8% on the year to $2,730.
Notable Changes This June
– Portland, OR took 15th place on our list, as one bedroom prices grew 2.9% to $1,400 and two bedroom prices grew 3.8% to $1,660.
– Nashville, TN had a median one bedroom rent of $1,030, up 3.0% on the month and 14.4% on the year. Two bedrooms prices also increased 3.2% to $1,280 this month.
– Dallas, TX became the 19th most expensive rental market in the U.S., thanks to the 3.3% and 3.0% increase in one bedroom and two bedroom prices, respectively.
– Raleigh, NC jumped four spots to take 36th place on our list, as one bedroom rents grew by 3.3% to $940 and two bedrooms grew 1.0% to $1,050.
– Richmond, VA one bedrooms increased 3.4% to a median price of $900, while two bedrooms increased 1.9% to a median price of $1,080.
– Washington, DC saw rent prices decline for both bedroom types this July. The median one bedroom price decreased -2.3% to $2,140, while two beds dropped -2.0% to $2,980.
– Honolulu, HI slipped to 10th place in our rankings, thanks to a -2.7% and -3.1% decline in median one and two bedroom rent prices, respectively.
– Denver, CO one bedrooms dropped -3.2% to a median price of $1,200, while two bedrooms dropped -2.9% to $1,650.
– Tampa, FL dropped from 34th to 39th place on our list, as one bedroom prices decreased -2.1% and two bedrooms decreased -1.8%.
– Mesa, AZ median rent prices fell -3.9% to $740 for one bedroom units and -1.0% to $950 for two bedrooms.
Good news for Los Angeles is that we’re at least staying steady, not reporting any sporadic rises or drops in rent prices–allowing for a more predictable market for renters. Bad news is that median rent for a 1 bedroom in LA is still nearly $2000/month (more than half of the median residents income), and among the top 10 most expensive in the nation. Do you think Los Angeles rent prices will rise or fall next month? Let us know in the comments below!
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