Reopening the economy is stabilizing the Bay Area rental market, but to what extent?Return to Blog
It’s no secret that rent prices were dropping quickly during the pandemic – especially in major Bay Area cities. But according to a recent analysis, there are signs the pandemic-weary rental market is edging up just a bit.
After months of decline essentially due to the pandemic, the Bay Area rental market appears to be stabilizing, although there is still a lot of uncertainty as the economy reopens. Even as home prices are red hot, the median rent for a one-bedroom apartment has dropped as much as a quarter in many Bay Area cities, but rents have begun to edge up just a bit.
According to a recent analysis by the national rental website Zumper, a list of Bay Area cities with the most expensive rent for a one-bedroom apartment is topped by San Francisco at $2,600, followed by Palo Alto, Menlo Park, Mountain View, and Emeryville at $2,200.
Zumper says cities with the least expensive rent include Concord, where one-bedroom apartment rents for $1,720, followed closely by Richmond, San Leandro, Hayward, and Campbell at $1,910.
There are signs the supply of apartments may be edging up a bit as well, but that may be due to the lack of homes for sale and affordable housing in general. San Jose is somewhere in the middle, with a one-bedroom apartment renting for about $2,050.
Looking back, the steepest decline in rent prices includes Redwood City, with a year-over-year decline of 3%, followed by Santa Clara, Sunnyvale, Menlo Park, and San Francisco. San Jose saw rents fall about 17% over the past year. It appears, at least for now, the decline in rents has ended, and the extent the general health of the economy has on the stabilization of rents is still unclear. The numbers, however, don’t necessarily reflect the issues facing renters who have been unable to pay their rent due to COVID-19 or landlords struggling to make their ends meet.
If you have any questions or would like assistance in your property buying, selling, or management process, contact Darryl Glass today at (510) 500-7531. For your convenience, you may also schedule a call with Darryl at a future date here.