In practically every significant U.S. metro region, average rents have reached all-time highs within the last five years. If rent increases continue at the current rate, the majority of major U.S. metro areas may become unaffordable for the average renter in ten years, according to new data from Spareroom.
When SpareRoom analyzed the average monthly rent for roommates in major metro areas over the previous five years (Q1 2024 and Q1 2019), it found that rentals had gone up by at least 25% in 18 of the 27 cities.
Nearly All Major U.S. Metros See Rent Spikes
With the exception of San Francisco/Bay Area, all metro areas had double-digit rent increases; eight saw increases of 40% or more during that time. Frequently, these are cities where rentals have historically been more reasonable. Riverside (51%) and Phoenix (48%) saw the largest increases of all major U.S. metro areas.
“Roommate rents are a great indicator of how renters in general are coping, as they’re usually the most affordable living situation available to people,” said Matt Hutchinson, a Spokesperson for SpareRoom. “That means if rents are rising fast for roommates, people are struggling at the lower end of the housing spectrum, which can only filter upwards. That not only has a huge impact on individuals, but it’s also incredibly worrying for the economic growth of the country as a whole. The number one reason people move is for work, but if people are staying put to avoid massive rent hikes, the U.S. workforce becomes inflexible, making growth through jobs incredibly difficult.”
Top 10 Metros with the Biggest Rent Increases:
- Riverside (51%)
- Phoenix (48%)
- Las Vegas (43%)
- Tampa (42%)
- San Diego (41%)
- Miami (40%)
- Charlotte (40%)
- Virginia Beach (40%)
- Philadelphia (39%)
- Orlando (38%)
Per the report, the rent situation is already a bad scenario. According to a 2023 SpareRoom survey of 1,175 US renters, some 98% of respondents expressed anxiety about the health of the rental market as it is, with high rents ranking as their top worry (86%). 90% of respondents claimed that the available housing was above their means, and 32% of them admitted to having already declined a job offer in order to avoid having to move.
Average Monthly Roommate Rents in the Past Five Years (Q1 2024 and Q1 2019):
| Metro areas | Average roommate rent (Q1 2024) | % change over 5 years |
|---|---|---|
| Riverside | $1,017 | 50.7 |
| Phoenix | $941 | 48.2 |
| Las Vegas | $879 | 42.7 |
| Tampa | $966 | 42.1 |
| San Diego | $1,293 | 41.3 |
| Miami | $1,258 | 40.2 |
| Charlotte | $883 | 40.2 |
| Virginia Beach | $855 | 39.9 |
| Philadelphia | $954 | 38.7 |
| Orlando | $933 | 38.2 |
To read the full report, including more data, charts, and methodology, click here.
The post Renting, But at What Cost? first appeared on The MortgagePoint.
