The second and third quarters of 2024 saw average roommate rents hit record highs in most major metro areas, but hope could be on the horizon as supply and demand start to rebalance.
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- Average roommate rents have reached record highs in 83% of major US metro areas
- The only exceptions are Boston, NYC, Los Angeles, San Francisco and Washington D.C.
- However, the balance between supply and demand is cooling, suggesting rents may stabilize over the coming months
New data from leading roommate matching service SpareRoom reveals that 24 out of the 29 busiest US metro areas saw rents hit record highs in the middle part of 2024, making life increasingly difficult for renters.
The only exceptions to this were Boston, NYC, Los Angeles, San Fansisco and Washington D.C.. Boston, and Los Angeles saw rents peak in Q4 2023, while NYC’s peak came in Q2 2023.
However, there are signs that things might be cooling, as the ratio between people searching for rentals and supply of available rooms is starting to decrease. The high point was in summer 2021, when there were 6.9 times as many people looking for rooms as there were rooms available. Over the course of 2023 that fell to around 4 people per room and it’s now down to 2.9, meaning the market is far more balanced than post-pandemic, when we saw a huge spike in people moving after a long period of uncertainty.
The following table shows the average roommate rent* in the top metro areas. Those numbers bolded represent the point where rents hit record highs.
| Metro areas | Q3 2024 | Q2 2024 | Q1 2024 |
| Atlanta | $915 | $911 | $871 |
| Austin | $1,176 | $1,133 | $900 |
| Baltimore | $934 | $929 | $901 |
| Boston | $1,360 | $1,373 | $1,352 |
| Charlotte | $974 | $1,104 | $883 |
| Chicago | $1,156 | $1,120 | $1,028 |
| Dallas | $1,093 | $1,114 | $819 |
| Denver | $1,274 | $1,285 | $1,066 |
| Houston | $1,051 | $1,040 | $830 |
| Jacksonville | $1,009 | $1,030 | $770 |
| Kansas City | $928 | $769 | $573 |
| Las Vegas | $966 | $1,019 | $879 |
| Los Angeles | $1,332 | $1,339 | $1,331 |
| Miami | $1,280 | $1,310 | $1,258 |
| New York | $1,540 | $1,543 | $1,489 |
| Orlando | $1,044 | $1,025 | $933 |
| Philadelphia | $948 | $1,011 | $954 |
| Phoenix | $1,023 | $1,060 | $941 |
| Portland | $1,155 | $1,209 | $872 |
| Raleigh | $1,030 | $1,048 | $816 |
| Riverside | $1,037 | $1,026 | $1,017 |
| Sacramento | $999 | $1,025 | $994 |
| San Antonio | $946 | $959 | $725 |
| San Diego | $1,340 | $1,330 | $1,293 |
| San Francisco Bay Area | $1,338 | $1,298 | $1,263 |
| Seattle | $1,115 | $1,138 | $1,040 |
| Tampa | $1,135 | $1,132 | $966 |
| Virginia Beach | $923 | $946 | $855 |
| Washington D.C. | $1,248 | $1,248 | $1,203 |
SpareRoom also analyzed the average renter’s budget** across the same metro areas and found that, in every single case, the average budget was lower than the average rent, often by as much as $200-300 per month.
Matt Hutchinson, SpareRoom director, comments: “Things haven’t got any easier for renters, as average rents hit record highs across the country. With the cost of living having risen over the same period, it means millions are struggling with affordability.
One of the major risks is that people end up just staying put to avoid having to pay higher rent, which could have a real knock on effect on the economy. Jobs are the single biggest reason why people relocate but, if affordability is stopping that, the result will be a less flexible workforce, which has real implications for economic growth.”
***
*Based on analysis of over 80,000 room ads placed on SpareRoom in Q3 2023 and 2024↩
**Based on an analysis of 69,271 ‘room wanted’ ads in Q2 2024↩
