Beantown is the third most expensive in the city for renters, according to a new report from Zumper.
With inflation at its highest level since the early 1980s, Zumper’s National Rent Report found a leading indicator on rising inflation rates is rent, as the three markets with the highest inflation numbers also have the most dramatic growth in rental prices.
In February, median rental prices hit an all-time high nationally, growing 1.4% from January, a sign that seasonality trends aren’t affecting the current growth period. Rents continue to rise at breakneck speeds, according to the report.
“That rent continues to hit all-time highs to open 2022 is interesting from the point of view that winter tends to be a slow period for housing markets for a fairly straightforward reason — nobody wants to move in the middle of winter,” the report stated.
According to Zumper’s February National Rent Index, the median price of a one-bedroom rental unit rose to $1,393 and $1,708 for a two-bedroom apartment. This was the ninth time in the past 10 months one-bedroom units hit a new high while two-bedroom units have done the same for 13 consecutive months.
Boston ranked third on the list of highest rents in the report, with a one-bedroom median rent price of $2,700. While month over month, Boston rents fell 0.7%, according to the report, year over year they grew 31.7%. Month over month two-bedroom rents fell 1.9%, while year over year those grew 23.6%.
San Francisco took the second spot at $2,930 and New York topped the list with $3,100.
Rent increases are tied to the housing market. Record-high home values are pricing renters out of the market and with such low inventory, renters who are looking for a home are staying put.
“These renters also have high incomes relative to other renters — they’re in the bubble of being able to buy a house after all — so the home sales market is keeping high-income tenants in the rental market longer than they want to be,” the report stated. “Thus, rent rises.”