“How expensive?” tracks measurements of California’s totally unaffordable housing market.
The pain: Despite some hopes that 2024 might be a tenant’s market, barely half of California markets surveyed by one study had falling rents.
The source: My trusty spreadsheet reviewed December rent stats from ApartmentList to see what happened in 15 larger California cities last year.
The pinch: Just eight of 15 California cities had rent drops in 2024, declines on par with the 49 dips among 100 big rental markets tracked in the report. Nationally, rents fell 0.6% last year, by this math.
What’s off
Think about the Golden State’s relative bargains – where rents fell, ranked by the size of the percentage decline …
Oakland: Rents dropped 3.3% over 12 months, with the median one-bedroom rent at $1,782 (No. 10 of the 15 cities), while landlords received $2,139 (No. 11) for two-bedroom rentals.
Santa Ana: Off 1.5%, at $1,919 (No. 8) for one and $2,263 (No. 9) for two.
Los Angeles: Off 1% – with rents $1,843 (No. 9) for one and $2,350 (No. 8) for two.
Santa Clarita: Off 1%, at $1,979 (No. 5) for one and $2,408 (No. 6) for two.
Chula Vista: Off 0.7%, at $1,717 (No. 11) for one and $2,246 (No. 10) for two.
Long Beach: Off 0.2% – with rents $1,545 (No. 12) for one and $1,892 (No. 12) for two.
Fresno: Off 0.1% – with rents $1,039 (No. 15) for one and $1,282 (No. 15) for two.
Riverside: Off 0.1% – with rents $1,472 (No. 13) for one and $1,768 (No. 13) for two.
What’s up
Contrast that with the seven California cities where rents rose, ranked by the increase …
San Francisco: Rents increased 4.3% over 12 months, with the median one-bedroom unit costing $2,761 (No. 1 of the 15), while landlords received $3272 (also No. 1) for two-bedroom units.
San Jose: Up 3.2% – with rents $2,410 (No. 3) for one and $2,860 (No. 3) for two.
Irvine: Up 2.1% – with rents $2,591 (No. 2) for one and $3,176 (No. 2) for two.
Sacramento: Up 1.5% – with rents $1,372 (No. 14) for one and $1,733 (No. 14) for two.
Fremont: Up 1.2% – with rents $2,209 (No. 4) for one and $2,677 (No. 4) for two.
Anaheim: Up 0.6% – with rents $1,950 (No. 6) for one and $2,407 (No. 7) for two.
San Diego: Up 0.1% – with rents $1,950 (No. 6) for one and $2,444 (No. 5) for two.
Bottom line
Basically, landlords made modest adjustments in 2024. Yet, it’s intriguing to see rent cuts primarily in California’s cheaper markets.
That’s a possible sign of budgetary stress among lower-income tenants. It could also be California workers — nudged back to offices — are boosting demand in pricier, urban communities.
Look at the 15 California cities when sliced into two groups – rents down vs. rents up.
For one-bedroom units, rents averaged $1,662 in places where rents dipped, vs. $2,178, where rents increased.
For two bedrooms, rents averaged $2,044 in cities with falling rents vs. $2,653 in rent-hike locales.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]
