Are Rents Up or Down
January 29, 2012 – San Francisco Real Estate Professionals
According to a recent article from RealFacts,” Average rents in the East Bay, Peninsula and San Francisco were nearly unchanged in the fourth quarter of last year and declined slightly in the South Bay, according to RealFacts, a Novato consulting group that tracks rents in apartment complexes with 50 or more units. That compares with the first half of the year, when some areas saw quarterly increases of 4 percent.”
South Bay saw a 1.4% drop in monthly rents - $1,981 to $1,954.
East Bay and Peninsula monthly rents remained the same at $1,859.
San Jose monthly rents were lower - $1,825 from $1,845.
Oakland saw an increase in their monthly rents in the 4th quarter - $1,961 from $1,925.
Concord’s average monthly increase a little to $1,288.
Earlier in 2012 monthly rental rates were forecast to peak in early 2013, however according to the figures from RealFacts, rents seemed to have peaked in late 2012. “A two-bedroom, one-bath apartment in San Jose was commanding $1,644, down from $1,669 in the third quarter; the same size apartment in Concord went for $1,201 a month, and in Oakland for $1,654 a month, both slight increases, RealFacts said.”
However, do note that the decreases seen in the 4th quarter of 2012 were from the increases for all of 2012. Oakland rental rates gains a full 17% over the previous year, and increased 8.8% in San Jose. The total rental increase in Oakland was 5.4% over the previous year.
It appears the ceiling has been hit in rental rates. Nick Grotjahn, a RealFacts spokesman, said “rent increases also leveled off slightly in the fourth quarter of 2011, but this time we think they've hit a ceiling as other factors are coming into play. I'm hearing the condo market is coming back, and that's really the alternative to apartments."
Are you perhaps looking to purchase a condo instead of renting? Owning a condo may fit in your budget better than renting. There are great condo’s in the area and the monthly mortgage payments would be less than paying rent! Want a list?
Call (650) 434-2289 today!!