Bungalow Q1 2022 U.S. Room Rent Report
Introduction
Bungalow is the leading, full service tech platform for renters that is available in 21 major markets in the U.S. Bungalow has created a modern, seamless, and fully digital rental solution for both renters and property owners/managers. Renters love and trust Bungalow because of the flexible lease terms, affordable rent in great neighborhoods, roommate vetting, furnished shared living spaces, in-app payments, maintenance, and utility management. Property owners, managers, and investors love Bungalow because the platform helps maximize return on rental investments, fill vacancies fast, and minimize the stress of rental management. Bungalow is focused on solving the housing supply constraints in the U.S. and helping renters find the best, affordable room rentals in the country.
While many prop tech companies track the cost of rent for studio/one bedroom, two bedroom and whole home rentals, over the last five years Bungalow has become the most comprehensive resource for roommate sharing rental listing. Popularity in roommate living has risen quickly in the past few years, especially as the world recovers from Covid and the industry continues to feel the effects of macro issues like:
US is short ~ 3.8m housing units
Home prices have risen 19%, and are expected to rise ~6% this year
Millennials have 20% less wealth than their parents did at the same age
Rents continue to climb across the U.S. The median rental rate hit new highs in the U.S. for the 14th consecutive month, according to a recent report Starting in 2022, Bungalow began releasing quarterly Room Rent Reports to provide renters and property owners an additional layer of industry knowledge - at the room level - to help them make informed rental decisions. The quarterly reports began with a Q1 2022 retrospective, and below is 2022 Q2 data. As Bungalow expands into new markets, additional cities will be added to this quarterly Room Rent Report.
Table of contents
Q1 2022 RetrospectiveKey Highlights:It Pays to ShareMethodologyQ1 2022 Retrospective
The Bungalow national average for room rentals in Q1 2022 is $1,097 per month, a 7.76% increase from Q1 2021.
The start of 2022 was met with hopes for a new “normal” coming out of two years of the pandemic. But it was also met with a new wave of COVID infections after the holidays. The world tried to reconcile what the new “normal” would be as people returned to the office, started attending events, traveling for work, and seeing friends and family more often. People across the country reexamined living decisions made during the heart of the pandemic, and reconciled if they could continue with their current living arrangement or if they would make sense going forward. After two years of rent instability and unpredictability, the industry started to be able to predict rent pricing with a bit more confidence, and saw that rents were increasing. Some people found that they could continue to decouple where they live with where they work, while others could not, which has led to a new, more flexible and affordable way of living for a large group of renters. Bungalow examined room sharing rent prices across the country for Q1 2022 in ten cities. This is what the company’s data reveals…
***https://www.zumper.com/blog/rental-price-data/ **https://www.businesswire.com/news/home/20220707005752/en/Multifamily-Rent-Growth-Across-the-Country-Cools-in-Q2
Bungalow Q1 2022 Room Rent Data (ranked by most expensive):
Key Highlights:
Bungalow Q1 2022 data shows that is pays to live with roommates! Bungalow's Q1 Room Rent Report revealed that significant cost savings to renters if they live with others. A few things that stood out about the Q1 data include:
San Francisco - continues to be one of the most expensive cities to rent, no matter if you share an apartment, or rent on your own
Portland - best major market deal across the U.S. for roommate living
New York - room rentals are significantly cheaper than renting an entire one bedroom apartment
Boston - has the largest difference in room sharing savings compared to renting a one bedroom apartment
Room rent continues to climb towards pre pandemic levels. For reference, here was the average Bungalow room rent per city a year ago in Q1 2021:
It Pays to Share
Below are side by side comparisons of roommate living with Bungalow versus renting an entire one bedroom or splitting a two bedroom apartment in half per month*:
* Market data for one bedroom and two bedroom rent sourced from Rent.com, Zumper.com and ApartmentGuide.com - two bedroom data is the cost of a two bedroom split in half
Methodology
To determine average room rent prices, Bungalow analyzed Q1 2022 data from Bungalow’s wide range of listings across the U.S. Prices are based on the average price for that respective quarter as a whole. Results were calculated with a 95% confidence level and a maximum of a $95 margin of error. The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment. The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
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