October Rent Report: Silver Lake, CA Notices A Break In Rising Rental Costs
Our Silver Lake Sellers Agents say that even though ongoing projections of California’s rental prices continue to go up, a handful of the state’s biggest cities are noticing evidence of rental price decreases.
In a new report, apartment listing website ABODO discovered that even though rent in some California cities is still rising — including Riverside, which saw a 14% hike in October, following a 6% rise in September — yet other major cities are in their second consecutive month of decline.
For example, San Jose saw its average rent for a 1-bedroom drop 12% in September and another 7% in October, Los Angeles rent fell 8% in September and 4% in October, Long Beach 7% in September and 9% in October, and San Francisco saw a 6% decrease in both months.
Nationally, our Silver Lake Real Estate Agents say that one of the biggest October rent declines was in another California metro: Sacramento rent went down by 10%, down to $1,007. The only BIGGER drop outside of the state was seen in El Paso, where a one-bedroom now costs $731, down 12%, and Columbus, OH, tied with Sacramento’s 10% drop.
So What’s Behind This Trend?
The Wall Street Journal reports that drop like these drastically signifies a national downturn in rental prices.
“San Francisco and New York are leading the way in the downturn,” Ken Rosen, chairman of the Fisher Center of Real Estate and Urban Economics at UC Berkeley, told the Journal. In October, New York also saw a rent drop of 3%.
Additionally, our Siver Lake Real Estate Agents say that California home prices, meanwhile, are continuing to go up. The Los Angeles Times, median home prices in July were up more than 6% from 2015 — up 8.5% in LA, compared with a 5.4% jump in San Diego — while sales are just a bit lower. Our Silver Lake Sellers Agents say that home prices are expected to level off, but demand will continue to rise.
For a more in-depth look at October rent around the country, check out ABODO’s National Rent Report.