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COSTS OF RENTALS GROW FASTER IN SACRAMENTO THAN IN ANY OTHER CITY IN CALIFORNIA

COSTS OF RENTALS GROW FASTER IN SACRAMENTO THAN IN ANY OTHER CITY IN CALIFORNIA
  • Post category:Blogs

Pricey rents in the hottest markets of California – Sacramento, San Francisco and Silicon Valley – continue to rise. The new statistics of this month enforce people to search for places to live elsewhere.

Yardi Matrix, the real estate firm, analyzed and found out that rents in Sacramento and the Central Valley are rising faster than in any other part of the state. Texas, Arlington, and Reno have had big rises in this year as well.

The origin of Sacramento’s rent burst we can find in the economic slide of the late 2000s. Rents rose by modest amounts of about 2.5 percent annually, until economic recovery began to take hold about 3 years ago. But nearby, the Bay Area’s economy came back from the collapse with a new flow in technician jobs. With thousands of people moving there for work, multifamily rents and property prices escalated.

The most expensive market is ranked to be San Francisco, with monthly rents at $2,941. In contrary, the Central Valley is the cheapest, with rents at $985 per month. The average cost, calculated by rental housing units, shows how the market has changed through years. Let’s see the full rankings of the most expensive markets, in order from expensive to cheap rentals:

  • South Bay: $2,774
  • Los Angeles metro: $2,302
  • East Bay: $2,204
  • Orange County: $1,992
  • San Fernando Valley: $1,820
  • San Diego: $1,810
  • Central Coast: $1,712
  • East Los Angeles: $1,683
  • Inland Empire: $1,389
  • Sacramento: $1,364
  • Central Valley: $985 per month.

Compared to all the city’s biggest increases, Sacramento’s housing market has the highest levels. “The current economics of supply and demand in the Sacramento market favor property owners and not the renter,” said Doug Ressler. The costs vary, of course, depending on location. Although cheaper rental can be found, finding a place to live may be hard. It is becoming extremely rare to find apartments with rents aimed at middle-class workers. Also, Sacramento is the 6th city to have the biggest apartment occupancy rate:

  • Minneapolis-St. Paul, MN: 97.4%
  • Milwaukee, WI: 97.0%
  • New York: 96.9%
  • Detroit: 96.8%
  • Providence, RI: 96.6%
  • Sacramento: 96.4%

The firm rentals continue to rise throughout 2017.

Here’s the full ranking:

  • Sacramento: 9.9% increase in rents between 2016 and 2017
  • Central Valley: 6.1% increasing
  • San Fernando Valley: 5.6%
  • Inland Empire: 5.2%
  • East Los Angeles: 5%
  • San Diego: 4.7%
  • Los Angeles: 3.7%
  • Orange County: 3.6%
  • East Bay: 2%
  • South Bay: 1.6%
  • San Francisco: .9%

In addition, this study does not include the Eastern Sierra, Imperial County and the northern valley part of Sacramento. For at least the next couple of years, neither developers nor brokers expect change in the region’s housing market. The rate of rent increase is expected to drop – estimates vary from about 3 percent to about 6 – but rents are still expected to boost.

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