The latest report from the US rental platform RentCafe compared the space and amenities that can be rented for $1,500 per month in major cities across the United States.
For example, in Wichita, Kansas, $1,500 per month can get you a 1,329 square foot apartment, enough to accommodate three to four bedrooms. However, in Manhattan, New York, the same amount can only rent a 216 square foot apartment, smaller than a typical studio apartment. RentCafe analyzed the 200 largest cities in the US; those with a population exceeding 225,000 are referred to as “big cities”, while others are considered “small cities”.
According to the platform, the average space that can be rented for $1,500 per month in the US is approximately 715 square feet (about 67 square meters).
RentCafe analyst Doug Ressler told Epoch Times that they have observed a trend: apartments are getting smaller.
“I believe the market structure is changing, and we see fewer and fewer two-bedroom and three-bedroom developments, replaced by studios and one-bedroom apartments,” he said. “Young people are getting married and having children later, and many singles or couples do not want to be tied down by a house.”
In major metro areas on the East and West Coast, such as New York City, Boston, San Francisco, and Los Angeles, the space that can be rented for $1,500 is the smallest – all less than 400 square feet (about 37 square meters).
In cities like Sunnyvale, Pasadena, Huntington Beach, and Glendale in California, $1,500 can only rent less than 500 square feet of space. Among them, Sunnyvale has the smallest space, only about 385 square feet.
Additionally, in cities like Chicago, Arlington in Virginia, Seattle, and Washington DC, $1,500 can only get you less than 500 square feet.
In comparison, in cities in the US South and Midwest, $1,500 can get you the largest space. In addition to Wichita, the top five also include Toledo, Ohio, Oklahoma City and Tulsa in Oklahoma, and Lubbock in Texas.
Other top cities include El Paso and Corpus Christi in Texas, Memphis in Tennessee, Baton Rouge in Louisiana, and Fort Wayne in Indiana.
In small cities, McAllen in Texas, Columbus and Macon in Georgia, can all rent nearly 1,400 square feet of space for $1,500. Amarillo and Brownsville in Texas also made it to the top ten in small cities.
According to the National Association of Realtors (NAR) data, as of June, the median home price in the US reached $435,300, hitting a historical high.
Real estate investor and Rentec Direct property management software founder Nathan Miller stated that he has observed the rise of co-living arrangements among tight budget renters, saving 30% to 70% on rent expenses.
“This way places suitable tenants in the same residence and can save 30% to 70% on rent expenses,” he said. “While moving to more affordable areas can indeed reduce expenses, tenants also need to consider their career development and lifestyle preferences.”
Real estate and estate attorney Alisha Melvin in Texas holds a similar view. “For example, my tech startup clients, despite high income, often choose to share larger upscale apartments with others because they value convenience and location.”
“As for working-class tenants, they often move to lower-rent suburban areas, but they often have to relocate every few years to maintain their budget,” she said.
Despite cheaper apartment rents and spacious spaces in the Midwest, RentCafe analyst Ressler does not believe there will be a large-scale population migration, as people still worry about moving costs. He believes that while remote work populations can choose their place of residence, many will still choose to be close to family and friends.