Rents in California are Increasingly High

Los-Angeles-CA-b81d34

The housing market is doing very well, thank you, but not for renters or home buyers.

According to the California Association of Realtors, a two-bedroom apartment in California averages $3,000 to $4,000 a month. The median price of a California home is over $500,000.

The highest markets are Silicon Valley, the overall Bay Area, Orange County, Los Angeles, and San Diego. Coastal areas also sell at high premiums.

Investors flourish in major municipal hubs such as San Francisco and Oakland where their return on rentals and purchases are accelerated.

In tourist destinations where Airbnb flourishes, renters are agreeable to paying higher prices and then subletting by the day to visiting travelers.

As a result of high housing costs, people are being priced out of living in their local communities.

Berkeley Rent Board Commissioner Leah Simon-Weisberg explains, “There’s been the perfect storm. First off, the foreclosure crisis pushed back into the rental market. It’s made rentals the most lucrative way of making money for big investment firms. [Then] in California all of our redevelopment money was gutted—so there’s been no movement regarding affordable housing. And all the economic growth has been focused in a few places.”

The Costa-Hawkins Rental Housing Act  facilitates high rents by prohibiting municipal rent increase limitations on certain kinds of exempted dwelling units. However another bill, AB 1505, if passed, would allow cities to opt out of Costa-Hawkins. In addition, activists in Richmond, Oakland, and surrounding areas have pushed in support of affordable housing with ballot measures and rental boards.

For more information on the need and push for affordable housing in California refer to The California Renters’ Revolt.

 

Author: jmelange

I am a writer living in the Bay Area, California.

2 thoughts on “Rents in California are Increasingly High”

  1. And the rents will continue to rise as long as tenants remain unorganized and apartments are considered as investments rather than housing. Look at this on the Internet: 5621 El Dorado Avenue in El Cerrito presents a unique opportunity for a new or seasoned investor to invest in an attractive, well-built 1970 apartment building. The property boasts a tremendous unit mix of nine 2bd/1bth units and one 4bd/2bth unit. All units have been completely remodeled with laminate wood floors, two toned paint, stainless steel appliances, granite counters, new cabinets, new bathrooms/kitchens, and dual pane windows. Exterior upgrades include but are not limited to fresh paint, new landscaping, soft story structure protection work, The property has on site coin operated laundry for additional income. The current rents are below market which will allow the next owner to come in, raise rents, and improve an already strong tenant profile. There is no rent control in El Cerrito, nor is it on the agenda, therefore making this a lucrative investment for the long term. For source: http://www.cityfeet.com/cont/ca/el-cerrito-commercial-property#id=LN20347040&overlay=true

    Find out more…

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