Bungalow Q3 2022 U.S. Room Rent Report

The Bungalow National Average for room rentals in Q3 2022 is $1,218, an increase of 3.37% from Q2 2022. Bungalow is reporting a 10.5% YoY increase in room rents. The national average cost of a 1 one-bedroom in September 2022 was $1,503.

In Q3, apartment rents across the country showed the first declines in nearly two years, according to recent industry reports. Access to affordable housing is the number one pain point felt by renters across America today, so these industry reports2 are encouraging. According to Bungalow’s Q3 analysis, the rental market is continuing to show signs of pre-pandemic characteristics, where rent is decreasing in some markets and increasing in others.

Historically it has been more common to see rents fluctuate up and down in a market, rather than see a steady decline or increase like we saw during and post pandemic. The pace of rent changes seems to be slowing broadly. This is a signal that rent prices in some areas are beginning to moderate or level out.

With the rise in interest rates, low supply, and a down market, many people are opting out of buying homes and turning to rentals. This is likely especially true in markets like New York City where rents are increasing at a rapid pace to all time highs. In cities where rents are increasing, renters are having to prioritize what matters most to them in a rental property, realizing they can’t have it all due to their rent budget. Many renters are having to sacrifice location, size of apartment, and access to outdoor spaces. Or, they are opting to move in with roommates when possible to avoid sacrificing location and other important amenities.

Bungalow examined room sharing rent prices across the country for Q3 2022 in 13 cities. This is what the company’s data reveals…

*https://www.zumper.com/blog/rental-price-data/ *https://www.globest.com/2022/09/28/median-apartment-rent-sees-first-declines-in-nearly-two-years/

* One bedroom data sourced from Zumper September 2022 rent report: https://www.zumper.com/blog/rental-price-data/

• New York is experiencing some of the most expensive rent the city has ever seen. Bungalow’s room rental rate increased, but not at the same pace as one bedroom rental industry data. The average rent for a 1-bedroom apartment in New York is $3,950 (a 22% increase from previous year) compared to Bungalow room rent at $1,451, a 2.5X in savings.*

• The top three most expensive cities remain - San Francisco, New York and Los Angeles have topped the list all three quarters of 2022 thus far.

• Portland continues to be the most affordable city to rent a room.

Bungalow room rents increased in 7 of the markets tracked and decreased in 6 markets from Q2 to Q3 2022. In the Q2 2022 Bungalow Rent Report all markets were up quarter over quarter, compared to the variation we now see in Q3:

* NYC One bedroom data sourced from Zumper September 2022 rent report: https://www.zumper.com/blog/rental-price-data/

Below shows the price details of renting through Bungalow and the additional cost for renting a one bedroom or splitting a two bedroom*:

* Data sourced from Zumper September 2022 rent report: https://www.zumper.com/blog/rental-price-data/

Below shows the price details of renting through Bungalow and the additional cost for renting a one bedroom or splitting a two bedroom*:

To determine average room rent prices, Bungalow analyzed Q3 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 $70-$104 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.