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California Apartment Vacancy at Highest Level Since 2021

California Apartment Vacancy at Highest Level Since 2021

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.

Hear from CRE newsmakers like LaTerra Development Managing Director Chris Tourtellotte. Come together with top dealmakers, owners, investors, lenders and more at Connect LA on May 3 at the Hotel Indigo.


Inside The Story

About Mark Nieto

Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.

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