SAN FRANCISCO, CA – Renters searching for a new home this summer can expect higher prices than last year, particularly among two and three-bedroom rentals, according to the latest quarterly HotPads Rent Report. Rent among two and three-bedroom homes is appreciating slightly quicker than one-bedroom homes in U.S. metros with more new apartment construction.

Rent prices rose 2.8 percent over the past year among both two-bedroom and three-bedroom rentals. Renters can expect to pay $1,310 per month for a two-bedroom unit and $1,445 per month for a three-bedroom unit.

Finding an affordable rental may be a bit simpler for those searching for a one-bedroom rental this year. Renters can expect to spend about $1,275 per month for a one-bedroom unit, up 2.2 percent over the past year.

Overall, median rent in the U.S. is $1,480, up 2.5 percent from a year ago. As rent continues to rise, it’s becoming more hard for renters to keep up with costs. With rent among two and three-bedroom rentals rising the fastest, renters who need more space face an even tighter affordability crunch. 

“Rent growth has mellowed out to a steady rate recently, but overall prices are still high compared to recent years,” said Joshua Clark, economist at HotPads. “Two and three-bedroom rentals are seeing the fastest pace of price growth this year, usurping one-bedrooms as the fastest-appreciating segment of the rental market in April 2018. New apartment construction tends to focus on studios and one-bedrooms, so the additional supply of smaller units has eased price pressures in that market segment. Renters looking for a larger apartment or home – including young families – should expect quicker rent growth this year.”

In Baltimore, Washington, D.C., and Austin – all markets that have seen substantial new apartment construction in recent years – median rent for a two or three-bedroom home is appreciating about twice as quick as a one-bedroom home. Median rent for two and three-bedroom homes in Chicago and San Antonio are also appreciating quickly, more than 80 percent quicker than one-bedroom rents.

Though two and three-bedroom rents are appreciating quickly, the financial incentives for living with a roommate remain strong. Sharing a two-bedroom rental with one person is still about half the cost of renting a solo one-bedroom unit.

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RALEIGH, NC – American Landmark, one of the fastest-growing multifamily owner-operators in the country, has bought two properties in Raleigh and Durham, North Carolina – Edinborough at the Park and Edinborough Commons. The properties, which together total 642 units, will both be renamed and receive $4.5 million in upgrades and renovations. The properties were bought from Livcor, a Chicago-based real estate asset management firm, for an undisclosed price.

American Landmark, which owns and manages a portfolio of 23,000 apartments throughout the Southeastern U.S., has been making a huge push into the North Carolina market over the past two years. It currently owns five properties in Raleigh and nine in Charlotte. Along with its debt and equity partner, Electra America, American Landmark selectively buys value-add properties in strategic locations across the Southeast, upgrading, modernizing and beautifying each to provide amenities that today’s renters want.

“We’re seeing a lot of tech-fueled growth across the Southeast, and in the Research Triangle Park area of course, combined with overall low unemployment across the country. This has made an unprecedented demand for apartments, so our goal is to meet that demand by ceating desirable, yet attainably priced, housing options for a more mobile workforce,” said Christine DeFilippis, Chief Investment Officer at American Landmark.

Edinborough at the Park, located at 200 Edinborough Drive  in Durham, has 330 one-, two-, and three-bedroom apartments, each with open-concept floor plans, lofted 9-foot ceilings, a fireplace, a private balcony/patio, and spacious closets. The property will be renamed “200 East” following renovations. It was 95 percent occupied at the time of sale.

Edinborough Commons, located at 6421 Campus Drive in Raleigh, has 312 apartments including one-, two-, and three-bedroom units with open-concept floor plans, lofted 9-foot ceilings, a fireplace, a private balcony/patio, and spacious closets. It will be renamed “The Mark” following renovations. It was 94 percent occupied at the time of the sale.

Both properties, which have swimming pools, 24-hour state-of-the-art fitness centers, and tennis and/or volleyball courts, will receive a total of approximately $4.5 million in improvements, including the installation of stainless steel appliances and new kitchen cabinetry, new lighting and plumbing fixtures, installation of washer/dryers in some units, and wide-ranging improvements to common areas including the pools, clubhouse and landscaping.

American Landmark is a national multifamily owner-operator specializing in multifamily acquisition, repositioning and property management.  It owns and operates properties in Georgia, Florida, North Carolina, South Carolina and Texas. 

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