Rental prices for housing in the United States are typically influenced by many factors. Regarding the property itself, the level of apartment finishes, the presence of balconies, laundry facilities, gyms, public outdoor spaces, parking, and doormen all impact the rent. Looking at the broader environment, rents for similar apartments can vary drastically between different cities; for example, there is a significant difference in rent between New York City and cities in the Midwest. Today, U-Tour Property brings you an overview of the rental market across the United States and in major U.S. cities for May 2019.
Nationally, the average monthly rent in the United States in May was $1,442, an increase of 2.5% ($35) compared to the same period in 2018. Among the 260 cities tracked across the country, 64% had average rents below the national average, while 36% had average rents above the national average.
Let us take a look at the rental situation in ten major U.S. cities:
We can see that geographical location is a key factor affecting rent. Monthly rents in East and West Coast cities such as New York City, Boston, San Francisco, and Los Angeles are significantly higher than those in inland cities like Atlanta. Notably, the average monthly rent in Manhattan, New York City, reached $4,200 in May 2019, and the average rent in San Francisco reached $3,648. In contrast, rents in inland cities such as Chicago and Atlanta remain at a relatively lower level.
The growth rate of rents in each city is also an important reference indicator. The chart below shows the year-over-year growth in rents for major cities.
From the chart, we can see that in New York City, which has the highest housing prices, rents in Manhattan and Brooklyn rose by 2% and 9.9% respectively compared to last year. San Francisco, which follows Manhattan in average rent levels, saw a 5.6% increase compared to last year, while Los Angeles on the West Coast saw a year-over-year increase of 4.8%. Meanwhile, growth rates in Philadelphia and Washington, D.C. were particularly notable, reaching 6.2% and 6% respectively. Chicago and Atlanta also saw considerable growth in rent levels compared to last year.
Let us now look at how rents in major U.S. cities changed compared to the previous month. Overall, the increases in Manhattan and Philadelphia in the East were relatively significant, with month-over-month growth of 0.6% and 0.4% respectively, while Seattle in the West also saw a significant increase of 0.9% over the previous month. Rents in Los Angeles and Miami remained largely unchanged.
After reviewing the rental situation in major U.S. cities, we believe you have gained a certain understanding of renting in the United States. The geographical location of the apartment is indeed a key factor affecting rent; in a place like Manhattan where every inch of land is precious, the average rent for a three-bedroom apartment exceeds $7,800 per month.