The pandemic-driven housing surge in California is winding down as the Golden State is seeing cheaper rents and the most available units since April of 2021. A new report from ApartmentList shows the statewide vacancy rose to 5.2% in March, well above the 3.6% during the height of the pandemic.

While the average rent in California remains out of reach for many people at $1,930 a month, about $250 more than three years ago, it nonetheless represents a 3.5% drop from August 2022’s peak. Availability is the main reason for the drop in prices, as demand has waned and there is much more new product on the market. Statewide multifamily building permits jumped by one-third in 2021-22 compared to the historic average.

Northern California markets are seeing the largest rent drops in the state, led by Sacramento County which registered a 5.1% price reduction since July 2022. Alameda County and Contra Costa County in the Bay Area are posting the highest vacancy rates in the state at 6.5% and 6.1% respectively.

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