Sunday, September 19, 2021

Rental rates prompt Californians to move back to cities

Vaccination

Rents are rising in urban centers as rents have declined in suburbs, indicating that tenants may be moving back to larger cities.

Rents for one-bedroom apartments in San Francisco rose 5.3 percent from May to June.

According to Jumper’s National Rent Report, “People are returning to the city in preparation for the office reopening. [rent increases] Strong again in June. “

The report continues, “On a quarterly basis, it is clear that the Bay Area has turned a corner. After four quarters of sharp declines in rents, each of its three major cities [SF, San Jose and Oakland] The second quarter of 2021 saw an increase in rents compared to Q1, including a 5.3 percent increase for San Francisco. With life returning to ‘normal’ in the Bay Area, there is no reason to think that this will not continue in the near term.”

At the same time, rents for one- and two-bedroom apartments in Los Angeles rose the respective 1.5 percent and 3 percent from May to June, while one-bedroom apartment rents in suburban Santa Ana, Anaheim and Long Beach decreased for the month. . .

Two-bedroom rents increased in Anaheim and Long Beach, but that may be a function of Disneyland’s reopening and the Ports of Long Beach and San Pedro being so busy.

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Rents continue to rise in California’s second largest city, San Diego. Rent for two-bedroom apartments was 1.6 per cent higher than a month ago. Two-bedroom apartments are now 10.4 percent more expensive than a year ago.

In the Central Valley, rents for single-bedroom apartments declined during the month, while rents for two-bedroom apartments increased.

This may indicate a lower demand for single-person homes for living spaces in Fresno and Bakersfield as they look to more urban environments. Rents in both cities are still much higher than they were a year ago. Increased rent for two-bedroom apartments may indicate increased wealth due to a hot labor market and recent stimulus money.

If the public health situation remains positive, it seems likely that the trend of people moving away from cities during the pandemic may reverse.

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Tim Scheller is a professional investor and economist based in Southern California. He is a regular columnist for The Epoch Times, where he notably provides some of his original economic analysis.

The views expressed in this article are those of the author and do not necessarily reflect the views of The Epoch Times.

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Rental rates prompt Californians to move back to cities
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