Apartment Rent Decrease in 7 out of 11 Major California Cities

Apartment Rent Decrease in 7 out of 11 Major California Cities

Apartment rents in California’s largest cities are bucking the national trend and decreasing, according to a report from the California Apartment Association. Zumper’s National Rent Report shows that seven out of eleven major cities in California have reported negative annual rent rates for one-bedroom units. These markets, which rank among the top 20% in terms of price and population, have seen significant drops in rental prices.

The most notable decreases occurred in Oakland (9.1%) and Sacramento (8.1%), while other major cities also experienced year-over-year declines: Los Angeles (-5.0%), San Jose (-2.3%), San Francisco (-1-7%), San Diego (-1-3%) and Long Beach (-1-). The primary reason behind these falling rental prices is not an increase in housing supply but rather a decrease in demand due to population outflows and job losses.

According to CAA, this trend can be attributed to factors such as declining job opportunities and high unemployment rates – with California recording the highest rate among all states as of April 2024 per Zumper’s report . Despite these challenges facing renters, there may be potential for more affordable housing options available now or on the horizon within these markets.

About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax and REVVED Up Accounting. In addition, Steve founded Madison Avenue Technology. With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.

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