Rent Continues to Rise
April brought yet another acceleration in asking rent, according to Dwellsy’s analysis of more than 533,000 available rental units. Here are the highlights from the current rental market:
- $1,920/mo: Median asking rent in April across the country
- 3.8%: 1 month growth in rent (vs. $1,850/mo in Mar 2022)
- 23.9%: 1 year growth in rent vs. $1,550/mo in April 2021
- 35.1%: Median rent as a share of pre-tax median income
A couple of data points highlight the particular shift this past year has wrought. In particular, the change in the premium to rent a house vs. an apartment has gone from 2.9% in January 2021 to 38.1% in April 2022.
The number of cities with median rent as a percentage of median income above 30%, has more than doubled. Last month, there were 95 of 237 cities, as compared to the 43 of 237 in August 2021.
These numbers underline the April extension of 2022’s three trends in rentals:
Trend #1: Renters continue to show a strong preference for single-family homes. As the supply for those types of rentals declines, their corresponding rent prices rise significantly. Single-family rentals alone saw 36% in rent increases over the past year (vs. 5.3% for apartments). Dwellsy is seeing expanding availability of single-family rentals across our top 50 markets, hopefully that will help pricing in the long run.
Trend #2: Rental affordability challenges continue to worsen. 95 cities small and large across the country now have severe rental affordability issues. This is a substantial increase from the 43 struggling cities recorded just a few months ago. Large cities like NYC and Miami typically struggle with affordability (and it’s gotten worse in those cities), but smaller, less expensive cities like Kansas City, Brownsville, TX and Ithaca, NY have also crossed into dangerous territory.
Trend #3: Premium rental markets like NYC and San Francisco are seeing extraordinarily high rent prices, causing a shift towards markets where renters can get more value. This puts more pressure on high-profile, secondary cities like Austin and Boulder, while lower-profile, small cities continue to be attractive options for economically conscious renters.
Dwellsy provides quick access to rent price tables for all U.S. cities and towns.
For full details, download the following data sets:
- Rent expense tables for over 400 cities
- Comparison of Single-Family Rentals vs. Apartment rentals in over 200 cities
- Affordability rankings that compare income and rent in over 300 cities
To book an interview with our CEO to discuss results and findings, please use this scheduling link.
About Dwellsy Data
As the largest and most inclusive rental marketplace in the country, Dwellsy has a representative sample of in-market asking rents, and our analysis reflects the actual experience of renters searching for a place in a given time period. Most other rental market datasets are focused only on premium multifamily units and have to use complex statistical modeling techniques based on data from several years ago in their attempts to replicate Dwellsy’s data.
Dwellsy is the marketplace that renters want and deserve, a comprehensive residential home rentals marketplace based on the radical concept that true, organic search in a free eco-system creates more value than the pay-to-play model embraced by all of the current rental listing services. Dwellsy has more than 12 million residential rental home listings, more than any legacy classifieds site—as well as the most diverse set of listings—including single-family rentals, condos, townhouses, and apartments at all price points.
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