Rents increased in nine counties during the first half of the year. San Mateo saw average rents jump 8% (to $1786), and Santa Clara rents rose %7 (to $1679). The numbers are determined by a comparison to rents from the same period a year earlier. The strength of the Silicon Valley and San Francisco markets are helping bump up rents even in the East Bay, where increases are significant, if not quite as high as South Bay counties.
The rental market's also getting a push from potential buyers who can't afford to buy a home. For people moving into this area, incredibly high housing prices make it impossible to actually purchase something--choosing to rent is often the only affordable option. This affordability gap is credited as the biggest driver of the thriving Bay Area apartment market. Even in places like Centra Costa, where the for-sale market isn't doing so hot, rents are moving up.
Vacancy rates are very low--under 5% everywhere but Contra Costa, Solano, and Sonoma--so there are no signs climbing rents will slow anytime soon. It's basic supply and demand. Landlords can easily raise rents, because there are still fewer properties around than there are renters. For now, there will always be someone willing to pay extra money. Or a line of people. The vacancy rate in Santa Clara is only 2.7%, and in San Mateo it's only 4.1%.
Makes for some very happy landlords, doesn't it?
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