Buyers Pre-Qualification Rental Market

California’s Rising Rents

California’s Rising Rents

California has been seeing rapidly risings rents since 2021. Not unlike the spike in costs for goods and services, rent is rising faster than worker incomes, especially here in California.

A reason behind these rent increases is due to demand being greater than existing supply. Much construction has been delayed due to rising material costs, labor shortages, and social distancing. This negatively affected housing supply.

In 2020, rent increase in California was just 0.6%

As of November 2021, rents for one-bedroom units in California grew by:

21% in San Diego;
16% in Bakersfield;
13% in Fresno;
11% in San Jose;
10% in Los Angeles;
8% in Sacramento;
4% in San Francisco; and
2% in Oakland

Two-bedroom units increased by:

22% in Fresno;
15% in Bakersfield;
15% in San Diego;
9% in Los Angeles;
6% in San Francisco;
6% in San Jose;
6% in Sacramento; and
4% in Oakland.

Inland metros experienced the steepest rent increases. Coastal cities where rent is already high, have not experienced the same amount of increase.

Demand will not outweigh supply indefinitely, but it still remains high in 2022. Sufficient construction is a necessity and construction starts may remain low for a while. Until then, we may continue to see rising rents.

You can read the source of this information in it’s entirety HERE

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