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Rents Declining in California’s Big Cities

Big cities in California are among the high-rent markets nationally that are experiencing apartment rent declines. Rent levels declined year over year in three major markets – San Francisco, New York and San Jose – and increased by less than 2% in Oakland, the next highest rent-growth metro.

Declines continue to affect the overall apartment market, and that performance moderation is reflected in Axiometrics’ Q3 2016 data.

Axiometrics’ Jay Denton says, “Job growth isn’t bad in the Bay Area and New York, though the rate has slowed over the past year, so demand for apartments is still relatively strong.” Significant new supply, recently delivered and expected, will force owners and developers to keep rents lower for competitive reasons.

Though year-over-year rent growth was negative in San Francisco, the average Q3 rent was 2.6% higher than the average Q2 payment.

High-priced market performance was counteracted by robust fundamentals in secondary markets, including Sacramento and Riverside, CA.

Read More at Axiometrics

Connect with Axiometrics’ Denton

For comments, questions or concerns, please contact Dennis Kaiser

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About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.

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