Bay Area Rents See Steepest Drop in Years as Supply Rises and Landlords Offer Deals

Bay Area rents saw the biggest yearly decline in 27 months in August, dropping 4.3% in SF/Berkeley/Oakland and 3.1% in San Jose.
Supply has increased with new housing laws allowing faster permitting, putting downward pressure on rents.
Landlords are offering concessions like 1-2 months free and negotiating lower rents to fill vacancies.
But rents are still unaffordable for many, with nearly half of tenants "rent burdened" by federal standards.
Rents may continue to fall into spring as winter is the slow season, providing some relief for renters.

mercurynews.com

Relevant topic timeline:

8/29/2023

Home prices rose for the fifth straight month in June

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An in-depth look at the Massachusetts rental market

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9/8/2023

Apartment Rents Plummet as Massive New Supply Outpaces Demand

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9/14/2023

Manhattan Rents Stay Sky-High as Tenants Balk at High Prices and Limited Options

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9/18/2023

Rent Growth Cools as Vacancy Rates Rise and Landlords Offer Concessions

Landlords are offering incentives to attract renters in the US housing market, even though the median asking rent is at a near-record high, with some landlords providing one-time discounts or a few months free to renters, which effectively lowers rents in certain areas, although this may not be reflected in asking-rent data. The rental vacancy rate has increased, leading to more vacancies for landlords to fill, and landlords are raising rents for existing tenants but not new tenants, in order to maintain high asking rents while strengthening returns. Demand for higher-end properties is declining, while more affordable units are in demand. The rental market varies across regions, with the West and South experiencing decreases in median asking rent, while the Midwest and Northeast have seen increases.

9/21/2023

Home Sales Drop 21% as Higher Rates Cool US Housing Market

The United States housing market has seen a 21 percent decline in previously occupied home sales over the past year, continuing the slowdown caused by rising interest rates, while prices continue to rise despite the decrease in sales, leading to a shortage of affordable homes and worsening home affordability for the foreseeable future.

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Posted 9/17/2023, 1:00:27 PM