November marks the fifth month in a row where rent growth has reached double digits (19.7% Y/Y), pushing the average Y/Y growth rate of the past twelve months to 8.5%.
In the 50 largest metros, the median rent was $1,771, up 19.7% year-over-year. This translates to an additional $291 per month for renters.
Rent by size: Studio: $1,443, up 17.5% ($215) year-over-year; 1-bed: $1,643, up 19.6% ($269); 2-bed: $1,993, up 19.9% ($330). Rents for all unit sizes are at series highs.
Rents are increasing the most in Miami, FL; Tampa, FL; Orlando, FL; Riverside, CA; San Diego, CA; Memphis, TN; and Austin, TX metro areas — all saw rents grow more than 30% year-over-year in November.
While minimum wages have increased in the past years, hourly workers have to devote additional hours to afford a typical rental unit in the top 10 metros with the biggest rent surges.
In November, a minimum wage earner needs to work for an extra 7 hours, 12 hours, or 15 hours per week to rent a basic studio, one-bedroom, or two-bedroom compared to pre-pandemic periods, raising concerns about rental affordability issues.