HOUSTON—High-end rentals are more expensive, but how much does the price of luxury vary across the US when it comes to rents? The national average rent in a high-end building is around $1,640 per month, about $490 more than an apartment in a low-end building, according to apartment search website RENTCafe.
Among the 30 largest US cities, the price of a luxury rental can vary by thousands of dollars from one place to another. Dallas recorded a 7.4% boost in high-end rents in the past three years, with rates now clocking in at $1,428 per month on average, according to a recent report. The cost of luxury rentals in Dallas ranges from $1,165 for studios to $2,049 for three-bedroom apartments. That's a price difference of $524 compared to a low-end apartment.
“RentCafe recently looked at the average rent in high-end buildings in the top 30 largest US cities, taking into account rents in buildings rated B+ and above, as per Yardi Matrix's property ratings,” Nadia Balint of RentCafe tells GlobeSt.com. “Among the 30 cities included, El Paso's high-end apartments are the cheapest at $976 per month, while New York's Manhattan apartments are the priciest at $4,416 per month.”
In Texas, Houston has the most expensive high-end rents at $1,448, while in Austin asking rents are not too far behind at $1,432. The average square footage of high-end units also varies from city to city. Houston being the priciest in this niche, also has the largest luxury apartments, measuring 965 square feet on average, followed by San Antonio apartments, with an average size of 935 square feet, Austin with an average apartment size of 929 square feet, El Paso with an average size of 922 square feet and finally Dallas, with the smallest square footage of 916 square feet. Dallas' high-end apartment market recorded the largest three-year increase in rents among the five Texas cities studied, accounting for that 7.4% increase since 2015, Balint tells GlobeSt.com.
“Austin rents in the high-end segment increased 6.7% in three years,” Balint continues. “In San Antonio, prices went up 5.4%, in Houston rents moved up only 1.8% due to the higher supply and the oil industry downturn, while in El Paso, high-end rents were down -1.3% due to diminished demand.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
