By Lauren Shanesy (MultiFamilyExecutive.com Article) — The one-bedroom unit has long been the staple of the apartment industry, but two-bedrooms seem to be gaining ground. (Even three-bedrooms are growing in popularity—and necessity.)
While rent prices for one-bedroom units across the nation fell this month, two-bedrooms saw an increase, according to the April 2018 Zumper National Rent Report, signaling a possible demand for larger units. The national one-bedroom rent average dropped 8.9% this month, to $1,184, after a historic high of $1,300 in March. Meanwhile, two-bedrooms grew 1.1%, to $1,414.
Overall, Zumper reports a 10% increase in year-over-year (YOY) rent prices nationally. Of the top 100 cities studied, only Chicago and Lincoln, Neb., had large YOY decreases, with both bedroom types down over 15% in Chicago and one-bedrooms down 9% in Lincoln.
One-bedroom units in Washington, D.C., saw the largest drop among the top 10 most-expensive cities, declining 4.1% in rent prices to fall out of the top five ranking, while Seattle’s rent was the fastest-growing among the top MSAs, with a 5% increase.
In some of the top rental markets, one-bedroom rents remained fairly flat in April while two-bedroom rents increased: In San Francisco, one-bedrooms stayed at $3,400 and two-bedrooms increased 2.5%, to $4,510; one-bedrooms in New York remained fixed at $2,900 and two-bedrooms grew 1.7%, to $3,500. In San Jose, Calif., one-bedroom rent increased a slight 0.8%, to $2,470, while two-bedrooms experienced more-robust growth, climbing 3.9%, to $2,940.
Zumper highlights a few other notable changes among markets this month:
–Philadelphia moved up two spots to rank as the 15th–most expensive city. One-bedroom rent jumped 5%, to $1,470, in April, while two-bedrooms saw an even larger bump, up 5.1%, to $1,640.
–In Minneapolis, one-bedroom rent climbed three spots this month, up 5.3%, to settle at $1,390, making the city the 18th-priciest in the country. Two-bedrooms saw a similar upward trend as well, growing 5.1%, to $1,850. Notably, on a YOY basis, two-bedroom rent in Minneapolis is up 12.8%.
–In Nashville, Tenn., one-bedroom rent grew 4.8% this month, to $1,310, moving up the Music City three spots to rank 23rd in the nation. Two-bedrooms jumped 5.1% there, to $1,440.
–Madison, Wis., rose six positions to become the 27th-priciest city, with one-bedrooms increasing 5.3%, to $1,200, and two-bedrooms growing 4.6%, to $1,360.
–Milwaukee shot up seven spots to rank 56th. One-bedroom rent there increased 4.8% this month, to $880, while two-bedrooms jumped 5.3%, to $990.
–Scottsdale, Ariz., fell seven spots to become the 25th-most expensive city, with one-bedroom rent down 5.1%, to $1,290, and two-bedrooms dropping 5.2%, to $2,010.
–Charlotte, N.C., saw one-bedroom rent decrease 4.2%, settling at $1,150, falling three places to rank as 31st in the country.
–Irving, Texas, dropped four positions, now ranking as the 32nd-priciest city. One-bedroom rent there decreased 5% in April, to $1,140, while two-bedrooms saw some growth, increasing 4.1%, to $1,540.
–In Bakersfield, Calif., one-bedroom rents took a 5% fall and seven-spot dip to mark the city as the 73rd–most expensive rental market, at $760.
–Glendale, Ariz., similar to Scottsdale and Bakersfield, also dropped seven places and now ranks as the 75th-priciest city. One-bedroom rents there decreased 5.1%, to $750.