After showing signs of stagnation toward the end of 2022, the asking rents for single-family homes appears to be on an upward trajectory once again.
The median asking rent for three-bedroom single-family rentals surged to $1,848, up $128, or 7.4%, from December 2022 to January 2023, according to an analysis by Dwellsy.
Rising U.S. consumer sentiment, which improved to a 13-month high in February, combined with would-be homebuyers opting to rent due to high mortgage rates, could explain renters’ willingness to shell out out more, according to Jonas Bordo, CEO and cofounder of Dwellsy.
“Los Angeles takes the top spot, with a median asking rent of $4,100,” says Bordo. “That easily beats out second-place contender San Jose, where rent for a three-bedroom SFR is $3,895.”
Nationwide, single-family rentals have grown in price at a dramatically higher rate than apartments, with Albany, Georgia, topping the list with a 42% increase in rents.
Rent boosts inflation:CPI report revealed inflated cost of housing. What that means for rent, mortgages
Housing market recovery?:Here’s why home builders feel ‘cautious optimism.’
Top 10 Most Expensive Big Cities for Three-Bedroom Single-Family Home Rentals
(Median 3-Bedroom Single-Family Home Asking Rent)
1. Los Angeles, California
January 2023: $4,100
Change since January 2022: + 5.6%
2. San Jose, California
January 2023: $3,895
Change since January 2022: + 8.2%
3. San Francisco, California
January 2023: $3, 700
Change since January 2022: + 1.4%
4. San Diego, California
January 2023: $ 3,545
Change since January 2022: + 5.9%
5. Miami, Florida
January 2023: $ 3,400
Change since January 2022: + 2.3%
6. Honolulu, Hawaii
January 2023: $3,300
Change since January 2022: + 4.9%
7. Boston, Massachusetts
January 2023: $3,200
Change since January 2022: + 9.4%
8. Riverside-San Bernardino, California
January 2023: $2,800
Change since January 2022: + 5.7%
9. New York, New York
January 2023: $2,800
Change since January 2022:+ 7.7%
10. Washington, D.C.
January 2023: $2,700
Change since January 2022:+ 8.1%
Cities With The fastest Growing 3-Bedroom Home Rent Prices in 2023
1. Albany, Georgia
January 2023: $1,335
Change since January 2022: + 42.8%
2. Fort Smith, Arkansas-Oklahoma
January 2023: $1,298
Change since February 2022: + 36.6%
3. Santa Barbara, California
January 2023: $3,650
Change since February 2022: + 35.4%
4. Rochester, New York
January 2023: $1,600
Change since February 2022:+ 33.3%
5. Anderson, Indiana
January 2023: $1,463
Change since February 2022:+ 33.0%
6. Rochester, Minnesota
January 2023: $2,050
Change since February 2022:+ 32.3%
7. Kalamazoo, Michigan
January 2023: $1,673
Change since February 2022:+ 31.9%
8. Monroe, Louisiana
January 2023: $1,400
Change since February 2022:+ 30.2%
9. Greenville, North Carolina
January: $1,500
Change since February 2022:+ 25.0%
10. Lawton, Oklahoma
January: $1,060
Change since February 2022:+ 24.7%
Swapna Venugopal Ramaswamy is a housing and economy correspondent for USA TODAY. You can follow her on Twitter @SwapnaVenugopal and sign up for our Daily Money newsletter here.
Story Credit: usatoday.com