”Survey says” appears to be like at numerous rankings and scorecards judging geographic areas whereas noting these grades are greatest seen as a mixture of suave interpretation and knowledge.
Buzz: The hole between what California tenants pay and nationwide rents narrowed throughout the pandemic period.
Supply: My trusty spreadsheet checked out ApartmentList’s stats on what new tenants pay as a way to gauge how a lot rents have risen within the pandemic period. It in contrast averages for California and the nation for July by means of September to related summer time months in 2019 utilizing a rental measurement monitoring all unit sizes.
Topline
California rents ran $1,958 a month this summer time, the second highest within the nation behind Hawaii. That was up 14% since July-through-September 2019.
In the meantime, the everyday US tenant solely paid $1,369, however that was up 21% in the identical interval.
These strikes translate to California tenants paying 43% extra vs. the nationwide norm – a premium that was 52% 4 years in the past.
Nonetheless, meaning it prices $589 a month extra – virtually $6,000 a 12 months – to be a renter within the Golden State.
Particulars
Rents gyrated greater nationwide as soon as coronavirus hit the housing market early in 2020. Some renters sought bigger residing areas. Others, with distant work choices, selected to maneuver away from greater cities. That onslaught of demand in flip boosted rents. However in 2023, with the pandemic a smaller well being and financial challenge, housing wants developed once more and rental demand has since slipped in lots of markets.
Nonetheless, rents stay above pre-pandemic ranges in a lot of the nation. The largest good points within the pandemic period had been present in states with noteworthy inhabitants inflows …
New Mexico: $1,296 a month common rents this summer time (No. 24 among the many states) are up 45% in 4 years.
Delaware: $1,617 (No. 12) – up 39% in 4 years.
New Hampshire: $1,679 (No. 9) – up 36% in 4 years.
Florida: $1,684 (No. 8) – up 34% in 4 years.
Mississippi: $1,102 (No. 35) – up 33% in 4 years.
Caveat
Let’s observe that California renters certainly not have had a common expertise for the reason that coronavirus upended the financial system.
For instance, 38 California cities out of 70 tracked by ApartmentList had four-year lease good points that exceeded the nation’s 21% enhance. The three largest jumps since 2019 had been present in Carlsbad at $3,187 a month up 44%. Escondido jumped to $2,220, up 41%, and Chino rose to $2,403, up 41%. All benefitted from exits out of huge Southern California cities.
In the meantime, this lease metric reveals value drops in eight California cities since 2019. The three largest declines had been within the Bay Space – Oakland ($1,571, off 19%), San Francisco ($2,203, off 16%) and Mountain View ($2,504, off 8%).
Backside line
The state’s slowly slipping inhabitants and its modest homebuilding efforts might have helped to chill lease inflation. Additionally, numerous government-imposed lease caps have restricted what landlords can cost. Sure different pricing tethers had been added throughout the pandemic.
Nonetheless, California’s an expensive place to lease. Simply peek on the 324 massive US counties tracked by ApartmentList.
California had seven of the ten costliest counties this summer time: Orange was No. 2 at $2,638, adopted by Santa Clara, at No. 3 at $2,565, San Mateo, No. 5 at $2,469, Napa, No. 6 at $2,463, Ventura, No. 7 at $2,446, San Diego, No. 8 at $2,419, and Santa Barbara, No. 9 at $2,383.
Jonathan Lansner is the enterprise columnist for the Southern California Information Group. He might be reached at jlansner@scng.com