Rental Prices Plunge in the Bay Area and Sun Belt — See Where Prices Are Falling Across the U.S.One-bedroom apartments in one California city experienced a substantial 7.2% drop in rent prices compared to the previous year.
Key Takeaways
- In September median rent for a one-bedroom unit in Oakland reached its lowest point since at least 2017.
- San Francisco and Portland are facing similar challenges in conjunction with retail exodus and crime issues.
- Sun Belt cities like Austin are also seeing a decline in rental growth.
Last month, one-bedroom apartments in Oakland experienced a significant decline in rental prices at a 7.2% drop compared to the previous year, marking the most substantial drop among the 100 largest cities in the United States, according to data fromApartment List, perThe San Francisco Chronicle.
The median rent for a one-bedroom unit in Oakland stood at $1,430 in September, the city's lowest rental rate since at least 2017, and more than $100 lower than the rental price for last year.
The price drop extended to the broader San Francisco metropolitan area, where there was a smaller year-over-year decrease of 4.3%, putting median rents for a one-bedroom at $2,269, perApartment List.
San Francisco has faced many challenges in the aftermath of the pandemic, as the downtown area has experienced a retail exodus and ongoing homelessness crisis. However, rent declines are also affecting other major metropolitan areas.
In September, Portland's rental growth declined by 5.5% compared to the previous year, according toApartment List, with the median rent for a one-bedroom apartment standing at $1,223 — down from about $1,290 in 2022. Like San Francisco, Portland has grappled with crime-related challenges and retail exodus. Last month, Nike announced it wouldpermanently closea factory store in Portland due to ongoing theft. Other retailers likeWalmartandREIhave also announced they would shut down stores in the area this year.
Another major city that experienced rent decline was Austin, with a 6.4% drop compared to September 2022. Austin's significant drop comes after its rapidincrease in home building permitsin 2022, the fastest of any U.S. city, which has created an imbalance of too much supply andinsufficient demand.
Related:While Rent Prices Dropped Around the Country in March, Manhattan Hit a New Record High
