US Rental Inflation 6-25-24

The average monthly apartment rent for a 1 bedroom apartment has increased from $884/mo. in 2017 to $1149/mo. in 2024. The $265/mo. a 30% increase. The current cost of a 1 bedroom apartment is $1149 or $13,788/yr. 

The current cost of a 2 bedroom apartment is $1317/mo. or $15,804/yr. This cost increased by $3684/yr.

Year       1BR     2BR

2017     $884    $1013

2018     $899    $1031

2019     $963    $1104

2020     $954    $1093

2021     $946    $1084

2022   $1114    $1277

2023   $1147    $1315

2024   $1149    $1317

https://www.statista.com/statistics/1063502/average-monthly-apartment-rent-usa/

In big cities, apartment rent costs are closer to $24,000/yr. to be closer to work. If you add the cost of utilities, transportation and food, you need a net income of $50,000/yr.

In past generations, the cost of rent for new grads was shared by roommates.

You never get your rent payments back. It’s like throwing money on the ground and burning it. The sooner you own a single-family home, the better. You get all of your mortgage payments back if you improve your house to raise its value.

My own home ownership history is a lesson in raising home values. We never rented. We assumed a 4% mortgage on our first fixer-upper in 1966.

Location             Year   Downpayment  Mortgage  Payments  Years Owned  Sales Price  Profit

St. Charles Mo. 1966         $750           $16,000     $1800/yr.     9 years         $36,000     $20,000

Salina Ks.          1975        $15,000       $40,000    $3600/yr.      9 years         $85,000     $45,000

Atlanta Ga         1986        $37,000       $100,000  $16,800/yr.  40 years

Will homeowners insurance go down in 2024? Unfortunately, home insurance rates will continue to soar in 2024, according to Insurify's analysis. Annual home premiums are expected to jump by an average of 6% nationally, from $2,377 to $2,522.

We paid off our mortgage in 2003. We did most of the improvements ourselves.

The cost of food is up 30% and auto insurance is up 26%. Car insurance costs continue to rise. According to a report from Bankrate, average premiums for full-coverage auto insurance hit $2,543 in 2024, a 26% increase from 2023.

Norb Leahy, Dunwoody GA Tea Party Leader