As competition for apartments increase along with rents, apartment shoppers need to be even more informed and savvy. They must understand the different market rates of apartments located in the areas they want to live in order to be able to identify realistic housing options during their search.
At Apartments.com, we wanted to find out if our users have a firm grasp on the actual cost of rent, or if their rent perceptions needed to be put in check. To find out, we compared the average cost of rent our visitors were using to search for a one bedroom apartment on Apartments.com to the actual rent being advertised. The results revealed a significant gap between how much apartment hunters think rent costs and reality. Here are some of the findings:
- Nationally, Renters are Searching 5% Above the Market Rate: Nationally, the average price of a one bedroom being searched for on Apartments.com is $1,000, compared to the actual average rent for a one bedroom, which is listed as $954.
- Renters Are Underestimating Rents in Most Popular Markets: When looking at the top 20 most searched markets, renters are undercutting actual rents by as much as 7 %– 41%.
- Brooklyn Apartment Hunters Need a Rent Reality Check: When looking over the top 100 most searched markets on Apartments.com, we saw the biggest discrepancy between perceived rents and actual in Brooklyn, NY. Renters are seeking apartments for half of what they cost or what is realistic. The average rent for a one bedroom apartment in Brooklyn is $3,041 compared to the average searched rent of $1,506.
For more results on areas of the country where perceived rent is furthest off base and closest to actual market value, checkout the infograph.
Have you notice any common renter myths that need to be demystified in your area? Tell us in the comments section below.