Pricey rents in California’s hottest housing markets – San Francisco and Silicon Valley – are continuing to soar, and new data out this month suggests rising costs in major metropolitan areas are driving people out to search for cheaper living elsewhere.
The real estate firm Yardi Matrix analyzed trends across California, and found rents are rising faster in Sacramento and the Central Valley than any other part of the state.
San Francisco is ranked as the most expensive market, with average monthly rents at $2,941, and the Central Valley is the cheapest, with average rents at $985 per month. Some places rent for more, and some for less. But the average, calculated by assessing rental housing with 50 units or more, provides a snapshot on how the market has changed year by year. Here’s the full ranking of California’s most expensive markets, followed by the most affordable.
▪ San Francisco: $2,941 per month.
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▪ South Bay: $2,774 per month.
▪ Los Angeles metro: $2,302 per month.
▪ East Bay: $2,204 per month.
▪ Orange County: $1,992 per month.
▪ San Fernando Valley: $1,820 per month.
▪ San Diego: $1,810 per month.
▪ Central Coast: $1,712 per month.
▪ East Los Angeles: $1,683 per month.
▪ Inland Empire: $1,389 per month.
▪ Sacramento: $1,364 per month.
▪ Central Valley: $985 per month.
Sacramento’s rental market had the biggest year-over-year increase compared to all other markets across the country, and throughout California.
“The current economics of supply and demand in the Sacramento market favor property owners and not the renter,” said Doug Ressler, director of business intelligence for Yardi Matrix. “Limited supply and demand continue to increase rental rates.”
The firm projected rents continuing to increase throughout 2017. Here’s the full ranking:
▪ Sacramento: 9.9 percent increase in rents between June 2016 and June 2017.
▪ Central Valley: 6.1 percent increase.
▪ San Fernando Valley: 5.6 percent.
▪ Inland Empire: 5.2 percent.
▪ East Los Angeles: 5 percent.
▪ San Diego: 4.7 percent.
▪ Los Angeles metro: 3.7 percent.
▪ Orange County: 3.6 percent.
▪ East Bay: 2 percent.
▪ South Bay: 1.6 percent
▪ San Francisco: .9 percent
The study does not include Imperial County, the eastern Sierra or the northern valley past Sacramento or regions north of Sonoma County.
Behind Sacramento, Seattle came in second as the area with the fastest-growing rents, followed by California’s Inland Empire, Orlando, Fla., Los Angeles and Las Vegas. Orange County ranked 11th nationwide, San Jose ranked 25th and San Francisco 27th.
Angela Hart: 916-326-5528, @ahartreports