BofA Data Finds the Surge in Housing Costs Varies by Metropolitan Area, with the Sun Belt Significantly Outpacing the West and Northeast
March 27, 2023 at 9:00 AM Eastern
Median Rent Payment Growth in Sun Belt Cities, such as Phoenix and Tampa, Outpaced Western and Northeastern Cities by more than 20 percentage points
NEW YORK, NY – Bank of America Institute released new analysis today which examines the increase in housing costs across the United States. BofA internal data shows that median rent payments were up 8% year-over-year (YoY) and median mortgage payments were up 7% YoY for BofA customers in February, but there are meaningful variations by geography. Metropolitan areas in the Sun Belt like Phoenix and Tampa saw rent costs increase by as much as a staggering 26% and 23% YoY respectively, both of which are at a record high pace despite the Fed action aimed at taming price increases. Cities outside of the Sun Belt, like San Francisco, saw more muted growth, as low as 2.5% YoY. Mortgage payments saw a similar regional divide, with metropolitan areas like Tampa, Orlando and Atlanta seeing the biggest rise, while Chicago, Washington, D.C. and Boston see only modest gains.
| City | Median rent payment growth1 | Median mortgage payment growth1 |
|---|---|---|
Phoenix |
26% |
10% |
Tampa |
23% |
15% |
Orlando |
23% |
13% |
Charlotte |
21% |
10% |
Austin |
21% |
14% |
Atlanta |
20% |
13% |
Dallas |
18% |
12% |
Miami |
16% |
15% |
New York |
9% |
9% |
Boston |
8% |
8% |
Seattle |
7% |
12% |
Chicago |
7% |
7% |
Los Angeles |
6% |
9% |
San Francisco |
2.5% |
10% |
Economists at the Institute offer four possible reasons for the regional divide:
“People across the Unites States continue to feel the squeeze from higher housing costs but the impact is uneven between regions,” said Anna Zhou, economist for Bank of America Institute. “Ultimately, population and employment growth are two main factors driving a region’s housing market, and this may be why we are seeing an over 20% YoY increase in rents in many Sun Belt cities.”
Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, Environmental, Social and Governance (ESG), and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from 67 million consumer and small business clients, 56 million verified digital users, $4.2T in total payments in 2022 and $1.4T in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 68 million consumer and small business clients with approximately 3,900 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 56 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).
Melissa Anchan, Bank of America
Phone: 1.646.532.9241
melissa.anchan@bofa.com
1 Source: Bank of America Internal Data. Data represents %YoY six-month moving average as of Feb. 2023
March 27, 2023 at 9:00 AM Eastern
BofA Data Finds the Surge in Housing Costs Varies by Metropolitan Area, with the Sun Belt Significantly Outpacing the West and Northeast
Median Rent Payment Growth in Sun Belt Cities, such as Phoenix and Tampa, Outpaced Western and Northeastern Cities by more than 20 percentage points
NEW YORK, NY – Bank of America Institute released new analysis today which examines the increase in housing costs across the United States. BofA internal data shows that median rent payments were up 8% year-over-year (YoY) and median mortgage payments were up 7% YoY for BofA customers in February, but there are meaningful variations by geography. Metropolitan areas in the Sun Belt like Phoenix and Tampa saw rent costs increase by as much as a staggering 26% and 23% YoY respectively, both of which are at a record high pace despite the Fed action aimed at taming price increases. Cities outside of the Sun Belt, like San Francisco, saw more muted growth, as low as 2.5% YoY. Mortgage payments saw a similar regional divide, with metropolitan areas like Tampa, Orlando and Atlanta seeing the biggest rise, while Chicago, Washington, D.C. and Boston see only modest gains.
| City | Median rent payment growth1 | Median mortgage payment growth1 |
|---|---|---|
Phoenix |
26% |
10% |
Tampa |
23% |
15% |
Orlando |
23% |
13% |
Charlotte |
21% |
10% |
Austin |
21% |
14% |
Atlanta |
20% |
13% |
Dallas |
18% |
12% |
Miami |
16% |
15% |
New York |
9% |
9% |
Boston |
8% |
8% |
Seattle |
7% |
12% |
Chicago |
7% |
7% |
Los Angeles |
6% |
9% |
San Francisco |
2.5% |
10% |
Economists at the Institute offer four possible reasons for the regional divide:
“People across the Unites States continue to feel the squeeze from higher housing costs but the impact is uneven between regions,” said Anna Zhou, economist for Bank of America Institute. “Ultimately, population and employment growth are two main factors driving a region’s housing market, and this may be why we are seeing an over 20% YoY increase in rents in many Sun Belt cities.”
Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, Environmental, Social and Governance (ESG), and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from 67 million consumer and small business clients, 56 million verified digital users, $4.2T in total payments in 2022 and $1.4T in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 68 million consumer and small business clients with approximately 3,900 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 56 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).
Melissa Anchan, Bank of America
Phone: 1.646.532.9241
melissa.anchan@bofa.com
1 Source: Bank of America Internal Data. Data represents %YoY six-month moving average as of Feb. 2023
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