While cities like New York and San Francisco have long been notorious for their high rents, in many U.S. cities, rents continue to increase steadily -- so much, in fact, that the cities in between the two coasts seem to be giving New York and San Francisco a run for their money. And yet high rents aren't deterring apartment-seekers.

An analysis by Rochester, Wis.-based Runzheimer International finds that while rents nationwide are indeed creeping upward with no end in sight, the Mid-Atlantic region has the highest apartment rental rates in the United States, surpassing even the Far West, where San Francisco reigns supreme. San Francisco's average yearly rent is $11,540 -- much higher than the average yearly rent for the Mid Atlantic, yet the city's rent far exceeds the norm in the Far West. San Francisco also is the nation's second-highest home-cost market ($321,600) behind Honolulu ($370,100), according to Runzheimer's 1997 figures.

The Mid-Atlantic region is comprised of the four major metropolitan areas of Baltimore, New York, Philadelphia, and Washington, D.C. The region averages $8,610 in annual rent for an 800-square-foot, three-room, one-bedroom rental unit. That's $717.50 per month.

The Far West region, comprised of the cities of Denver, Los Angeles, San Francisco, and Seattle, has an average yearly rent of $8,188 ($682.33 per month), placing the region in a close second. New England (represented by the cities of Boston; Hartford, Conn.; Portland, Maine; and Providence, R.I.) places third at $7,820 a year, or $651.66 per month.

Renters in the Southwest have reason to feel smug. The Southwest region (represented by Dallas, Houston, Oklahoma City, Phoenix) has an average yearly apartment rental rate of just $5,315 ($442.92 per month). The Midwest (Kansas City, Minneapolis, Omaha, and St. Louis), averages $5,888 per year, or $490.66 per month. Note that all of these rates exclude utilities and the cost of renters' insurance.

Here's a city-by-city breakdown of Runzheimer's 1997 annual apartment rental rate survey:

The annual rental values shown in the table are based on an 800-square-foot, 3-room, 1-bedroom rental unit located in suburban communities surrounding the city where a single person earning approximately $30,000 in annual income resides. Renter's insurance and utilities are not included. Source: Runzheimer International.

"For young singles considering post-graduation job offers from companies in various locations, apartment rents are key to budget planning and weighing what the job offer is really worth," says Runzheimer consultant John McGrath, CRP. "Of course, cost factors other than housing must be considered. Taxes, transportation -- including commutation costs -- and an entire range of goods and services, such as recreation, entertainment, food and clothing, must be considered."

What remains to be seen, of course, is how the current trend toward luxury apartments will affect how regions compare with one another. For example, in Dallas (located in the nation's least expensive apartment market), high-end apartment communities, with rents ranging anywhere from $700 to $1,500 per month, are sprouting up left and right at the blink of an eye. This is due partly to an aggressive plan by city developers to bring residents back into Dallas, a city whose downtown has been hindered by an identity crisis of sorts. The vast majority of Dallas' residents live in the suburbs, and after 5 p.m., the downtown population was comprised mostly of people unwinding nearby watering holes or restaurants. Not so anymore. The revival of downtown Dallas, particularly its Uptown area, has brought new life -- and new apartment communities -- downtown. But the urban lifestyle has a rather hefty price tag attached. And Dallas is one of many cities attempting to reverse the exodus to the suburbs.

Published: May 12, 1998

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