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Here Is The Average Cost To Rent A 2-Bedroom Apartment In Your City

Tyler Durden's picture




 

We have been pounding the table since 2009 that without a sustainable increase in average disposable income, the US housing market - that core driver for "wealth effect" and net worth for the "rest of us", i.e., those non-1%ers whose net worth is not tied up in various rigged, manipulated capital markets - will never recover, and as a result, neither will the US economy.

Four dead-cat bounces, and yet another fading bubble in home prices later, this has again proven accurate, with the percentage of Americans owning houses dropping to levels not seen in 19 years.

 

The inverse, or the percentage of Americans renting, promptly manifested itself, and is essentially a mirror image of the chart above.

 

To be sure, the logical tradeoff to unaffordable housing, one which also was expected from the beginning, and has manifested itself quarter after quarter, is a relentless increase in median asking rents to new monthly record highs across the nation...

... and especially in the northeast.

 

Ironically, the rental price surge, one which the CPI calculation stubbornly does its best to ignore, is taking place even as median rental income is the lowest it has been in over two decades.

 

But what is even more surprising is the clear dispersion among socioeconomic...

 

and ethnic classes...

 

... when it comes to a propensity to rent, suggesting that the marginal renter is increasingly the most financially challenged, which in turn also begs the question: how much longer can rental prices keep rising?

Still, as Mother Jones notes, "With more people trying to get into same number of units you get an incredible pressure on prices," says Shaun Donovan, the former secretary of housing and urban development for the Obama administration."

And yet, surely there is a limit to how far the average American can be pushed: today, half of all renters pay more than 30 percent of their monthly income in rent. For 28 percent of Americans, some 11.3 million, more than half of their salaries go toward rent!

One thing is clear: until there is a reason to reverse the own-to-rent trend, one which will not appear until median consumer incomes resume growing for all, not just for the uber-wealthy, this trend will continue until finally Americans are priced out of not only owning, but also renting.

*   *   *

So with all that said, and with record rental expenses already forcing millions of Americans to have far less disposable income (hint to the econogeniuses in Princeton: if tens of millions have to spend the bulk of their income on rent, that means there is far less disposable income left for everything else, which also precludes benign inflation from appearing... not to be confused with hyperinflation from monetary debasement) for everything else once the monthly bill for the roof above one's head is paid, here is a breakdown of 25 selected US metropolitan areas, ranked from most to least expensive, how much it costs to rent a two-bedroom apartment (one can only assume the $1,440 price listed for New York is based on some non-GAAP, magical numbers that exclude reality).

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Tue, 08/12/2014 - 14:18 | 5082816 The Axe
The Axe's picture

No inflation  move on....go get $5 coffee

Tue, 08/12/2014 - 14:18 | 5082818 quintago
quintago's picture

BS numbers. A decent 2bd in SF is $5k

Tue, 08/12/2014 - 14:25 | 5082833 Manthong
Manthong's picture

In case some of the jamokes out there have not figured it out..

It is August.. and 60 degrees F in the heartland..

Global warming is making the jungle natives restless…

Like they would do regardless of how many degrees it is hot..

Or how many degrees they are north or south of the equator.

 

oh, sorry... I don't want to appear racist..

just substitute Eskimo for the jungle native term above.

Tue, 08/12/2014 - 14:27 | 5082875 Pladizow
Pladizow's picture

For my city the #'s are atleast 30% higher than the chart!

Tue, 08/12/2014 - 14:30 | 5082898 gh0atrider
gh0atrider's picture

What is happening with attic prices??

Tue, 08/12/2014 - 14:34 | 5082913 Manthong
Manthong's picture

I just down-voted myself.. I have no clue..

Time to pick up on some great real estate in Ferguson.. or maybe East St. Louis.

It’s the only good thing to do for the rentier class.

Tue, 08/12/2014 - 14:36 | 5082925 BlindMonkey
BlindMonkey's picture

Eh!! You're a riot.

Tue, 08/12/2014 - 14:41 | 5082949 Manthong
Manthong's picture

yep.. it's a blast

almost as good as being a president on a two week golf outing in a very.. very very very very high rent district.. 

(Just ask Bill and Hillary)

Tue, 08/12/2014 - 14:49 | 5082987 max2205
max2205's picture

Bmore is fucking rediculiousm

Tue, 08/12/2014 - 14:51 | 5082993 Manthong
Manthong's picture

But y’know.. how can you blame someone who has to pay an Obama tanning tax when there is no whitening tax anywhere ????????

Tue, 08/12/2014 - 14:55 | 5083023 Manthong
Manthong's picture

OK.. so I don’t pay any tanning tax as just about all the tanning places I know of have been put out of business by the Obama tax (kind of like the idiots did to the yacht business after Clinton got in).

I just lay out to deepen the complexion.

So what are the bro’s doing to lighten up ???

Tue, 08/12/2014 - 15:20 | 5083172 BKbroiler
BKbroiler's picture

I don't know who made that chart, but the rent for 2br in NYC is about at least twice that...

Tue, 08/12/2014 - 15:50 | 5083312 knukles
knukles's picture

One car detached unheated unairconditioned garages circa 1937 are the way to go, folks.

Them numbers is way low ....

Tue, 08/12/2014 - 15:53 | 5083367 wee-weed up
wee-weed up's picture

 

 

In some places, rent costs are beginning to follow the inflated medical care cost model - rising costs due to Gov't involvement... i.e. Section 8 housing vouchers.

Tue, 08/12/2014 - 16:09 | 5083487 DaveyJones
DaveyJones's picture

or just one car

Tue, 08/12/2014 - 22:49 | 5085491 old naughty
old naughty's picture

some other ideas:

http://tinyhouseblog.com/

 

Tue, 08/12/2014 - 14:50 | 5082990 James_Cole
James_Cole's picture

1400$ for ny? 2k for sf? Something is amiss with this chart..

Tue, 08/12/2014 - 15:00 | 5083054 Raymond K Hessel
Raymond K Hessel's picture

....meaning half the rents are lower and the other half are higher, on average.

Tue, 08/12/2014 - 15:10 | 5083112 James_Cole
James_Cole's picture

Yeah I get how it works but these numbers don't seem to reflect reality, pretty confident there are some tricks going into those figures. 

A bit of digging:

Despite historically high rents, New York City ranked lower on the list because rents were not broken out by borough, and because the city's non-luxury two-bedrooms are often rent-stabilized, a research analyst for NLIHC told the Wall Street Journal.

And compare:

http://online.wsj.com/news/articles/SB1000142412788732450740457859375368...

Tue, 08/12/2014 - 16:12 | 5083497 Thisson
Thisson's picture

These numbers are bullcrap.  Sure, the average in NYC is $1400 when you factor in areas FAR outside of Manhattan.  Using the Median instead of the Mean would give you a more meaningful result.  In Manhattan, the average 1BR apartment (forget 2 bedrooms!) is above $3000/month.  

Tue, 08/12/2014 - 16:19 | 5083537 Buckaroo Banzai
Buckaroo Banzai's picture

Everyone seems to forget that New York City is not just Manhattan. There are huge swaths of Brooklyn (and parts of Queens, SI, and the Bronx) that resemble a third world country that white people who don't wear a police uniform don't set foot in. Loaded with Section 8 and similar kinds of, um, affordable housing.

Tue, 08/12/2014 - 15:13 | 5083129 Citxmech
Citxmech's picture

The other part of the equation is that many of these areas (NY and SF for example) have rent control.  NEW apartments rent for far more than the average brought down by the folks that will only move out of the place they've lived for 20 years feet first.

Tue, 08/12/2014 - 15:14 | 5083139 James_Cole
James_Cole's picture

NEW apartments rent for far more than the average brought down by the folks that will only move out of the place they've lived for 20 years feet first.

Yeah, seems ridiculous to include rent controlled / subsidized in their sample. 

Wed, 08/13/2014 - 07:08 | 5086261 angela03
angela03's picture

What you are describing is the median, not the average. They are two totally different parameters.

Tue, 08/12/2014 - 15:16 | 5083124 toxic8
toxic8's picture

$1400 in NY... haha, maybe in East NY

Fuckin hipsters, drove rents through the motherfuckin roof

2 months rent, security and deposit plus brokers fee

Need 10gs just to move into a shithole

It's a wonderful life!

Tue, 08/12/2014 - 15:22 | 5083190 Hippocratic Oaf
Hippocratic Oaf's picture

Take your anger here............

 http://diehipster.wordpress.com/

 

 

Tue, 08/12/2014 - 17:52 | 5084182 Intoxicologist
Intoxicologist's picture

That's hilarious!

Wed, 08/13/2014 - 11:30 | 5087369 cockroachfuture
cockroachfuture's picture

"Cause they're borderline squatters, peg legged bastards
Jeans so tight make your balls say the password"

https://www.youtube.com/watch?v=rLP9bgU9XJU

Tue, 08/12/2014 - 18:03 | 5084236 ziggy59
ziggy59's picture

What year is this chart from? 1970s?

Tue, 08/12/2014 - 14:50 | 5082984 RaceToTheBottom
RaceToTheBottom's picture

Go for discounted retail purchases.  Also, maybe rentals overlooking retail outlets.  People pay for front row seats at the riots.  They can sell their photography to the media and police....

Just make sure you have a good inspection written into your purchase contract...

Tue, 08/12/2014 - 16:27 | 5083613 Hugh G Rection
Hugh G Rection's picture

Time for me to look through ancestry.com on my mother's side.  Got to be an Ashkenazim in there somewhere...

Seems our "representatives" don't care about preserving this Country, may as well sell my soul also and exercise that right of return.  I'll get a monthly draw from the suckers in the States, and free Safari packages throughout Gaza and the West Bank!

 

Just Kidding, Fuck Israel!

http://zionismsucks.com/2014/08/12/idf-snipers-target-pregnant-mothers/

Tue, 08/12/2014 - 20:42 | 5084916 ElvisDog
ElvisDog's picture

Those statistics are bullshit. Try to rent an apartment in Silicon Valley for less than $2000-2500 or a house for less than $3500-4000. Can't do it.

Tue, 08/12/2014 - 14:40 | 5082948 JRobby
JRobby's picture

The rent is too damn high!

Tue, 08/12/2014 - 18:12 | 5084265 RiderOnTheStorm
RiderOnTheStorm's picture

It won't be long and the only thing we will be able to afford is to pitch a tent in our pants, if you know what I mean.

Tue, 08/12/2014 - 15:24 | 5083197 AnarchyInc
AnarchyInc's picture

If you only pay $850 for a 2 bedroom in San Antonio, you're going to be murdered.

Tue, 08/12/2014 - 15:47 | 5083326 NOTaREALmerican
NOTaREALmerican's picture

That still counts as an apartment available.   The Trash Class are used to living like that.

Tue, 08/12/2014 - 20:48 | 5084940 Tall Tom
Tall Tom's picture

As a direct response to your arrogance (Trash Class???) I have taught a homeless man on how to construct a simple land mine. (They are the ones, after all, that get me my Lithium Batteries...)

 

You ought to have seen how pissed off he was after reading the comments on this thread and the Welfare Thread...

 

I also told him that he can bury it on a Rich Man's property.

 

The Revolution will eneter into the Rich Neighborhoods.

 

That may be the last time that the guy will enjoy his lawn.

 

PROJECT MAYHEM...

Tue, 08/12/2014 - 14:34 | 5082915 NOTaREALmerican
NOTaREALmerican's picture

Re;  BS numbers. A decent 2bd in SF is $5k

The article is NOT about the average price of DECENT apartments.  

Tue, 08/12/2014 - 14:35 | 5082923 Bastiat
Bastiat's picture

"BS numbers. A decent 2bd in SF is $5k"

They must be using metropolitan area numbers, in the case of SF, Bay Area.

Tue, 08/12/2014 - 15:48 | 5083331 knukles
knukles's picture

Bay Area = Oakland....  Oppps!

Tue, 08/12/2014 - 14:38 | 5082942 Urban Redneck
Urban Redneck's picture

Is your idea of a decent 2-bedroom better or worse than this...

(a 2-bedroom dump can be found for a little less than half that)

Tue, 08/12/2014 - 15:07 | 5083102 failure to perform
failure to perform's picture

$18,731.75 per month!!!

Tue, 08/12/2014 - 17:30 | 5084046 Urban Redneck
Urban Redneck's picture

At the start of the financial crisis in 2007 you could rent a lake-front flat in any of these three buildings in Geneva with 3000-4000 sq ft, 12ft ceilings, ornate inlaid parquet floors, upholstered walls with gold leaf mouldings... basically a mini-Versailles for that price, now you can rent a decent/nice 2-bedroom apartment for the same price.

And they say money-printing doesn't have consequences.

Tue, 08/12/2014 - 18:16 | 5084276 max2205
max2205's picture

Oh yeah....fuzzy wall!

Tue, 08/12/2014 - 15:02 | 5083080 luckystars
luckystars's picture

rent control must be figured in.

Tue, 08/12/2014 - 18:13 | 5084275 RiderOnTheStorm
RiderOnTheStorm's picture

And Pest Control!!

Tue, 08/12/2014 - 15:16 | 5083150 Drop out
Drop out's picture

Well, that was when you entered your comment. Now it is $5500.

Tue, 08/12/2014 - 15:19 | 5083166 caconhma
caconhma's picture

What do you mean decent? I don't believe there are too many could/would  pay $60K+/year just for renting a two-bedroom apartment. 

The same goes for New York or any other cities.

Tue, 08/12/2014 - 15:59 | 5083419 ajax
ajax's picture

 

 

"BS numbers. A decent 2bd in SF is $5k"

Damn right quintago and correct the price for 2 bdrms in NYC as well. You might find a studio in NY for 1,500.-- but nothing larger.

Tue, 08/12/2014 - 16:19 | 5083533 Syrin
Syrin's picture

My thoughts exactly, plus they aren't apples for apples.   You can get about 1200 square feet  for a 2 bedroom apt here in Nashville while in NY that  "two BR apt" would be a total of 250 square feet, and have plumbing and electricity from 1812.

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