CBRE: Inflation Pumping Bay Area Rents to Pre-COVID Levels
While inflation on goods and services is hitting our wallets, rental housing prices in two of the three Bay Area regions are getting hit even harder, according to CBRE research. In Q1 of 2022, the East Bay had the highest rents relative to annual inflation indexed to 1996, while San Francisco and the Peninsula were just above inflation.
In 2020, Bay Area rents declined 19% in San Francisco, 15% in San Jose and 5% in Oakland thanks to the pandemic, but demand has returned. Oakland has seen rents surpass pre-COVID levels, averaging $2,528 per month compared to $2,441 in late 2019. Rents in the other two regions, however, remain below 2019 prices.
Stubbornly high inflation could mean higher apartment rents entering the summer season given additional demand from those returning to their offices. On the other hand, soaring prices in other consumer categories may slow things down as potential renters see plenty of pressure on housing budgets.
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.