If you’re looking to rent an apartment, good luck.
Rents in the Tri-City area are hitting all time highs, matching a trend that prevails around the Bay Area, according to a research firm in San Francisco.
And this price rise could continue according to Nick Grotjahn with RealFacts, which collects information on complexes with 50 or more apartments.
"If the double digit rent growth continues in San Francisco, the Peninsula and South Bay, I suspect we'll see a migration to the East Bay as renters will be willing to commute further in attempt to find more affordable housing," he told Patch.
According to the study released earlier this week by RealFacts, rental rates have jumped more than 10 percent over the last year in some areas.
Currently, the average rent in the Tri-City area is $1,591, up from $1,486 this time last year, according to a recent report. On average, rents have increased nearly $100 across the board in the Fremont-Newark-Union City region, the report shows.
A complete list of findings is contained on the attached PDF. Selected examples show the following monthly rents:
- a studio now averages $1,113 per month, up 9 percent from $1,020 in the last 12 months;
- a one-bedroom, one-bathroom apartment is about $1,440, up from $1,332 last year;
- a two-bedroom townhouse (TH) now rents for $1,650, up 5.5 percent from $1,564 during the same period.
A survey of local complexes fit with the trend highlighted in the RealFacts study.
At the Verandas in Union City, a higher-end community located near the Bart station, a two-bedroom, two-bathroom apartment is about $1880, up more than $200 from $1,650 this time last year. At Avalon Union City — the priciest complex in Union City — a two-bedroom currently starts at $2,185.
While the Tri-City region is expensive compared to the national average of $1,029 a month, it's lower than our larger Bay Area counterparts.
According to the report, the San Jose market has seen the highest increase with an average rent reaching near $2,000. It’s the highest market surveyed this quarter, the report states. But San Jose isn’t alone. Oakland had a 14.4 percent jump in the last year to $1,835 with San Francisco’s average rent rising 12.9 percent to $2,734.
Why are rents rising?
A Mercury News article on the phenomenon attributes it to a combination of an improving job market and the fact that some would-be home owners are unable to buy or hold onto homes.
But given that rental properties are a market the best answer for why landlords are raising rents may simply be that they can.
Have you been in the market for a rental? What's your experience? Landlords, what do you say? Tell us in the comments section below.
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