Redfin Reports Renters on a $2,000 Budget Can Afford 70 More Square Feet Than They Could During the Pandemic—Enough for a Small Office

Rhea-AI Summary

Redfin reports that U.S. renters with a $2,000 monthly budget can now afford larger apartments compared to mid-2022 peak rental prices. The current median asking rent of $1,615 ($1.81 per square foot) allows for a 1,103-square-foot apartment, which is 74 square feet larger than during the August 2022 peak when rents averaged $1,700 ($1.94 per square foot).

Geographic variations are significant: Memphis offers the most space (1,570 sq ft) for $2,000, while San Jose offers the least (537 sq ft). Smaller apartments generally have higher price per square foot, with 0-1 bedroom units averaging $2.09/sq ft compared to $1.51/sq ft for 3+ bedrooms. The improvement in rental affordability is attributed to the recent apartment construction boom, particularly in Sun Belt states.

Positive

• Rental affordability has improved with median asking rents decreasing from $1,700 to $1,615
• Apartment sizes available for $2,000 budget increased by 74 square feet since August 2022
• Ongoing apartment construction boom expected to continue improving rental affordability into 2025

Negative

• Current apartment sizes still 256 square feet smaller than pre-pandemic levels (October 2019)
• Significant geographic disparity in rental value, with coastal cities offering less than half the space for the same budget

Insights

Market Research Analyst

The rental market analysis reveals significant shifts in value proposition since the pandemic peak. With median asking rents now at $1,615 versus the $1,700 peak in August 2022, renters are seeing improved space efficiency for their budget. The 70+ square feet gain for a $2,000 budget represents meaningful additional living space in the current market. The geographical disparities are striking - Memphis offering 1,570 square feet versus San Jose's mere 537 square feet for the same budget highlights the dramatic regional variations in rental value. The apartment construction boom, particularly in Sun Belt states, is creating downward pressure on rents, suggesting this trend of improved value may continue through 2025.

Real Estate Analyst

The stabilization in rental rates coupled with rising incomes signals a positive shift in rental market dynamics. The 13.4% improvement in space efficiency since peak prices (1,103 sq ft vs 1,029 sq ft for $2,000) demonstrates meaningful market correction. The price-per-square-foot variation between unit sizes ($2.09 for 0-1 bedrooms vs $1.51 for 3+ bedrooms) reveals important economies of scale in rental housing. This data suggests strategic opportunities for renters to maximize value by considering larger units or exploring markets with better space efficiency. The continued apartment construction pipeline indicates sustained improvement in rental affordability metrics through 2025.

Renters are getting more bang for their buck thanks to the recent apartment construction boom, which has led to asking rents stabilizing below their pandemic peak

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — A U.S. renter on a $2,000-a-month budget can afford an apartment that is more than 70 square feet larger today than it was when rents peaked in mid-2022. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

The median U.S. apartment asking rent in October was $1,615. That equates to a median price per square foot of $1.81, meaning the projected apartment size for a $2,000 budget would be 1,103 square feet.

The median asking rent peaked at $1,700 in August 2022 when the typical apartment was listed at an all-time high of $1.94 per square foot, equating to a 1,029 square foot apartment for a $2,000 budget—74 square feet smaller than today. That’s the equivalent size of a small home office.

Rental Budget (Monthly)	Projected Apartment Size (Oct 2024)	Projected Apartment Size (Aug 2022)	Difference 2022→2024
$1,000	551 square feet	514 square feet	+37 square feet
$1,500	827 square feet	771 square feet	+56 square feet
$2,000	1,103 square feet	1,029 square feet	+74 square feet
$2,500	1,379 square feet	1,286 square feet	+93 square feet
$3,000	1,654 square feet	1,543 square feet	+111 square feet

Five years ago in October 2019, before the pandemic housing boom caused rents to spike, the U.S. median asking rent was $1,337, equating to $1.47 per square foot. That means the projected apartment size for a $2,000 budget was 1,359 square feet—256 square feet larger than today. For context, the average bedroom in the U.S. is roughly 130 square feet.

“Renters are getting more for their money than they were during the pandemic because asking rents have since stabilized below their record high, and incomes have continued to climb,” said Redfin Senior Economist Sheharyar Bokhari. “Rental affordability has improved thanks to the recent apartment construction boom, especially in Sun Belt states. That trend is likely to continue into 2025, as there are a lot of still-to-be-finished apartment buildings due to come online.”

Renters get more value for money in larger apartments

Generally speaking, smaller apartments have a higher price per square foot than larger apartments.

In October, one square foot of space in a 0-1 bedroom apartment cost $2.09, while in a 3+ bedroom apartment, it only cost $1.51.

	Median Asking Rent (October 2024)	Price Per Square Foot (October 2024)	Square Footage ($1,000 Budget)	Square Footage ($1,500 Budget)	Square Footage ($2,000 Budget)	Square Footage ($2,500 Budget)	Square Footage ($3,000 Budget)
0-1 Beds	$1,473	$2.09	478	717	956	1,196	1,435
2 Beds	$1,695	$1.62	617	925	1,234	1,542	1,850
3+ Beds	$1,980	$1.51	663	995	1,326	1,658	1,989

Part of the reason the price per square foot is higher for smaller 0-1 bedroom apartments is because they are more concentrated in densely populated metros like New York, where rents are more expensive.

A renter on a $2,000 budget in Memphis can get 1,000 more square feet than a San Jose renter on the same budget

Geography also plays a major role in determining the size of an apartment that can be rented for a specific budget. A renter on a $2,000-a-month budget can afford an apartment larger than 1,000 square feet in more than half of the major metro areas we analyzed in October.

Renters in Memphis get the most value for their money, with $2,000 being enough to afford a 1,570-square-foot apartment. Birmingham, AL (1,523 square feet), Louisville, KY (1,479 square feet), St. Louis, MO (1,388 square feet) and Houston (1,380 square feet) round out the five metros where $2,000 rents the most space.

Metros Where $2,000 Rents The Most Space (Square Feet)

	All Apartments	0-1 Bedroom	2 Bedrooms	3+ Bedrooms
Memphis, TN	1,570	1,358	1,664	No data
Birmingham, AL	1,523	No data	No data	No data
Louisville, KY	1,479	1,301	1,579	No data
St. Louis, MO	1,388	1,265	1,468	1,547
Houston, TX	1,380	1,281	1,471	1,535
Raleigh, NC	1,334	1,153	1,440	1,504
Indianapolis, IN	1,333	1,168	1,448	1,537
Cincinnati, OH	1,331	1,189	1,189	1,445
Cleveland, OH	1,316	1,158	1,443	1,484
Jacksonville, FL	1,297	1,110	1,415	1,494

The story is very different on the west and east coasts, where rents are more expensive. In San Jose, CA, a renter on a $2,000 budget can only afford a 537-square-foot apartment, the smallest among the most populous metro areas. Compared to Memphis, that’s a difference of more than 1,000 square feet.

Metros Where $2,000 Rents The Least Space (Square Feet)

	All Apartments	0-1 Bedroom	2 Bedrooms	3+ Bedrooms
San Jose, CA	537	491	596	630
San Francisco, CA	565	520	634	No data
New York, NY	581	546	651	599
Los Angeles, CA	591	549	648	661
San Diego, CA	602	538	655	677
Boston, MA	645	568	736	698
Seattle, WA	732	640	875	976
Riverside, CA	752	675	797	848
Providence, RI	788	659	885	No data
Miami, FL	806	704	862	874

San Francisco (565 square feet), New York (581 square feet), Los Angeles (591 square feet) and San Diego (602 square feet) round out the five metros where $2,000 rents the least space.

To view the full report, including charts and additional metro-level insights, please visit: https://www.redfin.com/news/rent-ppsf-2024

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241210707324/en/

Contact Redfin

Redfin Journalist Services:

Kenneth Applewhaite

press@redfin.com

Source: Redfin

FAQ

How much more apartment space can $2,000 rent get you now compared to 2022 peak according to RDFN?

According to Redfin (RDFN), a $2,000 monthly budget can now get you 74 square feet more space (1,103 sq ft) compared to the August 2022 peak (1,029 sq ft).

Which US city offers the most apartment space for $2,000 in rent as per RDFN's October 2024 data?

According to Redfin's data, Memphis offers the most space for a $2,000 budget, with approximately 1,570 square feet available.

What is the current median asking rent in the US according to RDFN's latest report?

According to Redfin's latest report, the median U.S. apartment asking rent in October was $1,615.

How does the price per square foot differ between apartment sizes in RDFN's October 2024 data?

According to Redfin's data, 0-1 bedroom apartments cost $2.09 per square foot, while 3+ bedroom apartments cost $1.51 per square foot.