The pandemic has caused a housing surge in California, which is now beginning to wind down. A new report from ApartmentList reveals that the statewide vacancy rate rose to 5.2% in March 2021, significantly higher than the 3.6% seen during the peak of the pandemic. Despite average rent remaining at an unaffordable $1,930 per month – approximately $250 more than three years ago – prices have dropped by 3.5% since August 2022 due largely to increased availability of new product on the market and waning demand for rental units across California’s markets; multifamily building permits jumped by one-third compared with historic averages over 2021-22 period alone!
Northern California is seeing some of largest rent drops throughout state; Sacramento County registered a 5.1% decrease since July 2022 while Alameda County and Contra Costa County posted highest vacancy rates at 6.5%, respectively 6%. LaTerra Development Managing Director Chris Tourtellotte will be discussing these trends alongside other CRE newsmakers at Connect LA event on May 3rd held at Hotel Indigo .
