When people look back on the year 2021, it’s doubtful anyone will struggle to name a major news event or entertainment highlight to define the year for them. Between President Joe Biden’s first year in office, the COVID-19 vaccine rollout, Tom Brady’s Super Bowl win with Tampa Bay, and Squid Game, it’s been more than an eventful year.
But for many Americans, 2021 was the year their rent went up. Rent has risen at an incredible rate, with Zumper’s National Index showing an 11.6 percent rise in the median one-bedroom over the course of the year, with two-beds up even more at 13.6 percent. Residents in big cities who benefited from falling rent in 2020 had a rude awakening this year when rent snapped back to where it was prior to the beginning of the pandemic; in some cities rent has now surpassed its pre-pandemic peak. In metro areas where single-family homes are the primary form of housing, rent has risen at breakneck speeds as skyrocketing home valuations price out more and more renters who would otherwise buy. There are very few parts of the country where rent isn’t significantly higher than what it was heading into 2021.
Zumper’s 2021 Annual Rent Report dives into what residents have experienced this year. By combining Zumper’s proprietary rental data with its annual renter survey, it provides a complete picture of where rent is rising the most and what renters are thinking as they navigate a considerably more expensive rental market.
Key Themes and Findings
Virtual apartment tours are here to stay: The pandemic turned virtual apartment tours from nice-to-have to must-have. More than 16 percent of respondents in 2021 said they signed a lease after a virtual tour, a number unchanged from 2020.
Unprecedented rent growth: It’s hard to overstate how dramatic rent growth has been in 2021. The median one-bedroom rent nationally is up 11.6 percent this year, while two-beds are up 13.6 percent.
Rent in East Coast cities surpasses pre-pandemic peaks: After rent plummeted during 2020, big cities on the East Coast saw rent not only return to where it was before the pandemic but also reach all-time highs.
Phoenix, Florida, Tennessee among areas that experienced the most rent growth: While almost everywhere in the country saw rent rise significantly, cities in the Phoenix area, Florida, and Tennessee were among the top 20 in rent growth in 2021.
Rental applications increase as competition heats up: The number of respondents who said they filed just one application during their last apartment search dropped by 14.5 percentage points, a sign of how difficult it’s gotten to find rentals.
It’s a bad time to buy a house, but people plan to do it anyway: The number of people who said it’s a good time to buy a house dropped 17.5 percentage points in 2021, but the number of people who said they plan to buy in the next two years increased 16.5 percentage points.
About Zumper
The largest privately owned rental platform in North America with more than 175 million visits per year. Zumper is on a mission to change renting forever. By making it easier, faster, and more human, we’re creating opportunity for everyone to make a fresh start. Named a 2021 Best Startup Employer by Forbes and a 2021 Best Place to Work and Company with the Best Benefits by BuiltIn SF, Zumper is headquartered in San Francisco with hubs in Los Angeles, Scottsdale, Chicago, Miami, and Providence. To date, Zumper has raised over $150 million from Kleiner Perkins, Goodwater Capital, Headline, Dawn Capital, and the Blackstone Group. Learn more at zumperblog.kinsta.cloud or email press@zumper.com.
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