A recent study by Lower, using over a million active single‑family listings from its Movoto portal, reveals how dramatically the cost of an additional bedroom can differ across the United States. The analysis covered 255 cities with populations of at least 100,000 and compared median list prices for two‑, three‑, four‑ and five‑bedroom homes.
National averages
Nationwide, moving from a two‑bedroom to a three‑bedroom home adds an estimated $648 to a monthly housing payment. The jump from three to four bedrooms adds about $764, and from four to five adds roughly $812. While the dollar increase grows with each extra room, the percentage increase is highest for the first upgrade, a 35.3% rise from two to three bedrooms.
Coastal markets see the steepest premiums
High‑cost coastal markets dominate the top of the list. In Fort Lauderdale, Florida, the premium for moving from four to five bedrooms is $3.1 million at the purchase‑price level, translating to an estimated $20,991 higher monthly payment – more than many families pay for an entire mortgage elsewhere.
In Carlsbad, California, the median price jump from two to three bedrooms is $900,000, which works out to an additional $5,662 per month.
Midwest offers modest increases
Several Midwestern cities show the opposite extreme. Adding a bedroom in these markets typically raises monthly payments by only $16 to $39. In Peoria, Illinois, a fifth bedroom adds roughly $16 per month.
Why the gap is so wide
The study notes that local market conditions—home prices, property‑tax rates, and homeowners‑insurance costs—drive the differences. In 19 cities, the typical three‑bedroom home listed below the median price of a two‑bedroom home, reflecting variations in neighborhood, lot size and home age rather than a loss of value.
Methodology
Monthly payment estimates assume a 30‑year conventional fixed‑rate mortgage at 6.250% with a 5% down payment, and include principal, interest, property taxes and homeowners insurance. Property‑tax rates were drawn from the 2024 American Community Survey, and insurance premiums from The Zebra. The analysis reflects listing prices as of July 15, 2026, not final sale prices, and does not adjust for square footage, lot size, age or condition.
Understanding these regional differences can help prospective buyers budget more accurately and decide whether a larger home fits their financial goals.
Original reporting: El Paso News (HLL/CB) — read the source article.
