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.
