The Riverside Press-Enterprise
Big-city rents down 5 months in a row
California big-city rents fell for the fifth consecutive month in January.
My trusty spreadsheet looked at January estimates compiled Apartmentlist of lease rates for new tenants in 50 large California cities.
California big-city rents ran $2,088 in January, according to my populated-weighted average of the 50 cities. That’s down 0.5% from December as the economy cools and the urge for larger living spaces dips. Since 2018, January rents have averaged 0.1% onemonth gains.
Also, do not forget that rents statewide are still up
1.5% versus January 2022 and are 12% above what landlords charged in pre-pandemic January 2020.
And the pandemic’s inland rush created threeyear rent hikes of 30% or more in eight markets, all in Southern California: Murrieta (up 40%), Escondido (36%), Moreno Valley (35%), Chula Vista (34%),
Carlsbad (33%), Pomona (32%), Ontario (31%), and Riverside (30%).
Big drops
One month: Vista was off 2.5% to $2,196, Irvine off 2.3% to $2,996, and Santa Rosa off 1.9% to $1,818.
12 months: Roseville was off 4.4% to $2,105, Ventura off 3.8% to $2,048 and Costa Mesa off 3.5% to $2,461.
Three years: Oakland was off 15% to $1,613, San Francisco off 13% to $2,174 and Berkeley off 10% to $1,740.
Big hikes
One month: Glendale was up 1.3% to $2,100, Pomona up 1.1% to $1,894, and Fresno up 0.8% to $1,311.
12 months: Santa Clara was up 8.7% to $2,631, Escondido up 6.8% to $2,177 and Hayward up 6.5% to $2,173.
Three years: Murrieta was up 40% to $2,411, Escondido up 36% to $2,177 and Moreno Valley up 35% to $2,129.
Extremes
Highest rent: Mission Viejo at $3,004, Irvine at $2,996 and Carlsbad at $2,969.
Lowest rent: Fresno at $1,311, Oakland at $1,613 and Sacramento at $1,615.
The top 10
California’s most populated cities in January had seven one-month drops, three one-year drops and two three-year declines …
Los Angeles: $1,870 monthly, down 0.3% in a month, up 1.1% in a year and up 6% in three years.
San Diego: $2,328 monthly, down 0.7% in a month, up 3.8% in a year and up 26% in three years.
San Jose: $2,370 monthly, down 0.4% in a month, up 4.9% in a year and up 2% in three years.
San Francisco: $2,174 monthly, down 1.1% in a month, up 0.6% in a year and down 13% in three years.
Fresno: $1,311 monthly, up 0.8% in a month, up 2% in a year and up 25% in
three years.
Sacramento: $1,615 monthly, down 0.6% in a month, down 2.1% in a year and up 19% in three years.
Long Beach: $1,662 monthly, down 0.7% in a month, up 2% in a year, and up 15% in three years.
Oakland: $1,613 monthly, down 0.9% in a month, down 3.3% in a year and down 15% in three years.
Anaheim: $2,243 monthly, up 0.3% in a month, up 4.1% in a year and up 26% in three years.
Santa Ana: $2,115 monthly, up 0.3% in a month, down 0.6% in a year and up 22% in three years.
Bottom line
The rental market continues to tilt to the tenant.
Yes, rents fell in 72% of the 50 cities last month, but that’s down from 84% the previous month.
Also, consider January’s 0.5% one-month rent dip is the smallest since September, when the downtrend began.