California Rent Growth Defies Expectations: Affordable Cities and Tech Hubs Lead Price Surge
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| California's rental landscape The YoY Rental Change versus Median Rent Breaks Down into 3 Regimes. The data reveals three distinct patterns. .The state's most expensive market, San Francisco, shows moderate of growth at 4.3%, while mid-market cities like Oakland and San Diego are experiencing rent decreases. Meanwhile, inland cities Bakersfield and Fresno, despite their lower baseline rents, are posting some of the strongest growth rates in the state. |
https://claude.site/artifacts/61275094-b46c-44aa-837b-f9e332283e83
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| California Rent and Year over Year Change for various MSA |
https://claude.site/artifacts/0ce232b5-ad19-47a8-8037-14d53884368c
California Rent Growth Defies Expectations: Affordable Cities and Tech Hubs Lead Price Surge
In an unexpected twist for California's rental market, both the state's most expensive and most affordable cities are seeing the steepest rent increases, according to new data from Zumper. Bakersfield leads the pack with a 7.6% year-over-year increase, while tech hubs Los Angeles and San Jose follow closely behind at 6.7% and 6.2% respectively.
"The traditional relationship between market affordability and rent growth appears to be breaking down," says housing economist Jennifer Chen. "We're seeing parallel surges in both inland markets, where rents are still relatively affordable, and coastal tech hubs, where median rents already exceed $3,000."
The data reveals three distinct patterns across California's rental landscape. The state's most expensive market, San Francisco, shows moderate growth at 4.3%, while mid-market cities like Oakland and San Diego are experiencing rent decreases. Meanwhile, inland cities Bakersfield and Fresno, despite their lower baseline rents, are posting some of the strongest growth rates in the state.
This trend challenges the narrative of exodus from expensive coastal markets and suggests a more complex dynamic at play in California's housing market. The state's overall median rent of $2,365 remains 39% higher than the national average, with eight of eleven major cities showing increases despite broader economic headwinds.
California rent hikes: Where are the biggest increases in November? – San Diego Union-Tribune
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California rent hikes: Where are the biggest increases in November?
Bakersfield is No. 1, up 7.6% in a year. Next, Los Angeles, up 6.7%.
“How expensive?” tracks measurements of California’s totally unaffordable housing market.
The pain: For all the talk of falling rents, landlords are upping their ask in eight of the state’s 11 largest ...
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California rent hikes: Where are the biggest increases in November?
“How expensive?” tracks measurements of California’s totally unaffordable housing market.
The pain: For all the talk of falling rents, landlords are upping their ask in eight of the state’s 11 largest cities.
The source: My trusty spreadsheet reviewed November stats from Zumper on what landlords sought, combining median asking rents and one-year price changes for one- and two-bedroom units in 100 big US cities, including 11 from California.
The pinch
For November, the typical California landlord sought $2,365 a month, up 2.3% in a year. Rents rose in eight of 11 cities.
Compare that with the rest of the nation, where landlords in 89 cities asked for $1,445 –– or 39% less than California. Rents were collectively up 1.7% in the year as 60 cities saw increases.
Pressure points
Ponder California rents and their swings, ranked from the biggest jumps in what landlords seek to the smallest …
Bakersfield: Up 7.6% in a year (No. 17 gain of the 100) to $1,300 (No. 69).
Los Angeles: Up 6.7% (No. 20) to $3,080 (No. 5).
San Jose: Up 6.2% (No. 25) to $2,970 (No. 7).
Fresno: Up 5.4% (No. 29) to $1,530 (No. 45).
San Francisco: Up 4.3% (No. 35) to $3,640 (No. 2).
Anaheim: Up 2.3% (No. 46) to $2,370 (No. 14).
Long Beach: Up 2.1% (No. 47) to $2,170 (No. 19).
Sacramento: Up 0.8% (No. 61) to $1,690 (No. 33).
Santa Ana: Down 1.1% (No. 72) to $2,470 (No. 11).
San Diego: Down 2.2% (No. 78) to $2,730 (No. 9).
Oakland: Down 3.7% (No. 91) to $2,310 (No. 15).
Bottom line
Ponder rent dips in California’s two big economic peers, according to this math.
In nine Texas cities, landlords asked for $1,420 a month, 40% below California’s rents. Rent was down 1.1% year over year with increases in six cities.
Seven Florida cities have $1,775 rent – 25% below California. That’s off 2.2% in year, with increases in three cities.
And think about the national extremes …
Costliest: New York, up 6.3% in a year to $4,960.
Cheapest: Wichita, Kansas, up 6.1% to $820.
Biggest gain: Syracuse, New York, up 27% to $1,390.
Biggest dip: Minneapolis, off 9.9% to $1,550.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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