”Survey says” looks at various rankings and scorecards judging geographic locations while noting these grades are best seen as a mix of artful interpretation and data.
Buzz: California rents have increased three straight months after dropping in the previous five months.
Source: My trusty spreadsheet looked at ApartmentList’s April report on California rents.
Topline
Rents statewide ran $1,941 a month in April, up 1.4% (or $26) in three months. It’s slightly smaller than the 2017-19 average increase of 1.64% in the January-to-April period.
The upswing is a contrast from the previous five months when rents fell a combined 4.5% (or $90). So, tenants are paying only 0.1% more in a year – but 15.2% more over four years.
Details
The slower growing state economy has enough muscle left to help end the recent rent drops.
And the ongoing move back to offices and classrooms for workers and students may have pushed some tenants to move away from inland neighborhoods and back to traditional employment hubs.
Look at the state’s 12 most populous counties. Only one – Sacramento – had falling rents the past three months. That market’s real estate has cooled as departures from the Bar Area have slowed.
Sacramento rents ran $1,636 a month, off 0.7% (or $12) in three months vs. rising an average of 3.8% in spring 2017-19. Rents are down 3.3% in a year but up 23% over four years.
Similarly, Riverside County rents were flat for the past three months. Fewer exits from Los Angeles and Orange counties are a likely factor.
Riverside rents ran $2,028 for April – that’s no change compared with 1.6% average gains in spring 2017-19. Rents are down 3.2% in a year but up 36% over four years.
Bottom line
California rents have firmed as they typically due to start the year.
Landlords also benefited from an unaffordable homeownership market. Plus, the state’s job market, despite some ugly layoff headlines, is still producing paychecks, albeit at a much slower pace.
If the cooling continues, rents could resume their dips.
Elsewhere
Rents in the 10 other big counties …
San Bernardino County: $1,850 a month in April, up 2.5% (or $45) in three months vs. 2% average gains in the springs of 2017-19. Rents are down 0.8% in a year but up 37% over four years.
Santa Clara County: $2,509 a month, up 2.3% (or $57) in three months vs. 2.4% in spring 2017-19 – up 1.8% in a year, up 2% over four years.
San Diego County: $2,370 a month, up 2.1% (or $49) in three months vs. 2.1% in spring 2017-19 – up 2.4% in a year, up 34% over four years.
Contra Costa County: $2,051 a month, up 1.9% (or $39) in three months vs. 2.7% in spring 2017-19 – down 0.2% in a year, up 7% over four years.
Los Angeles County: $1,926 a month, up 0.8% (or $15) in three months vs. 0.8% in spring 2017-19 – up 0.2% in a year, up 13% over four years.
Alameda County: $2,061 a month, up 0.8% (or $16) in three months vs. 2.7% in spring 2017-19 – down 1.4% in a year, down 2% over four years.
Orange County: $2,595 a month, up 0.7% (or $19) in three months vs. 1.3% in spring 2017-19 – down 1.4% in a year, up 27% over four years.
Fresno County: $1,295 a month, up 0.5% (or $7) in three months vs. 1.1% in spring 2017-19 – down 2.9% in a year, up 28% over four years.
San Francisco County: $2,191 a month, up 0.5% (or $11) in three months vs. 1.3% in spring 2017-19 – down 0.2% in a year, down 15% over four years.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
Source: www.mercurynews.com