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A new report by realtor.com lists the metro areas where it’s cheaper to rent than to buy and the San Francisco / Oakland / Hayward area finished second nationwide as it’s 97 percent cheaper to rent a starter home.
Specifically, median rent for a starter home in the Bay Area is $2,943 and the monthly cost to buy is $5,798.
Not surprisingly the San Jose / Sunnyvale / Santa Clara area finished 4th with a rent-to-0buy difference of 83 percent.
San Francisco and Bay Area rents continue to decline at a rate faster than the national average. Rents in San Francisco in December fell 1.1 percent% to $2,174 per month.
Currently San Francisco and San José are the only two metro areas with populations over 1 million that have rents lower than pre-pandemic levels.
Analysts cite the ongoing tech layoffs as having a major impact on rentals.
In a bit of good news for some East Bay renters, a federal judge has ruled that COVID-era protections against evictions in Alameda County can stay in place – at least, for now.
Alameda County – including the city of Oakland – are one of only two Bay Area counties that still have protections in place. Landlords sued to have the protections removed but the judge said the ordinances were temporary and didn’t exempt renters from the obligation to pay rent.
In Bay Area counties where the protection has been lifted with over 6,300 evictions being served between July 2021 and June 2022.
According to SmartAsset, the Bay Area has three of the top five cities wi the highest price-to-rent ratios in the country. Any ratio above 21 means that renting is generally advantageous. San José has a ratio of 42.2; San Francisco is 37.3 and Oakland stands at 32.
Of course, this is only one indicator and individual circumstances vary such as income, available downpayment, and how long one plans on staying in the home.
Data from the National Association of Collects and Employers shows that the average starting salary for college grads in 2020 was approximately $55,000, an increase of 14 percent from 2010. Not bad.
Meanwhile, Apartment List reports that apartment rents have risen 16 percent in the last year alone and 28 percent since 2017. Not good.
Many college grads are taking on roommates to help defray the cost.
With competition for affordable units very high, many property owners are requiring cash savings and stable work histories which recent graduates often can’t supply.
While the early days of the pandemic saw many city dwellers leave for the suburbs and a subsequent drop in rental rates, realtor.com reports that many who remained – or returned – are now facing increases by as much as 40 percent.
Currently, some states have laws limiting how much rates can be increased in a given year, but many do not.
Some tenants are negotiating two-year leases to get a slight break, while others are offering a few months of rent upfront.
With the eviction ban scheduled to end at the end of September, many renters and landlords are still waiting for their share of $500 million in federal aid that has already been allocated to the Bay Area.
To date, California housing officials have received requests for $1.4 billion in relief and paid out $426 million — approximately 30% — since the program began in March.
Large cities and counties established their own programs, and have primarily focused on the poorest renters most likely to become homeless.
Analysts say that application websites are often glitchy and many of the requirements for state and local aid are confusing.
According to a new report by Zillow, in the 50 largest U.S. metro areas, 33 have rents that are higher than monthly mortgage payments. As nearly 52 percent of all employees are at least partially working remotely, many are finding that they can rent out their current home and live whereever they wish.
Currently, single-family homes make up approximately one-third of the nation’s rentals. 70 percent of rental properties are owned by individuals.
Of course, rentals slowed dramatically after the onset of the pandemic but rents are up in all major 50 metros.
Rents are rising across the country and according to a new article in the San Francisco Chronicle, the Bay Area features 3 of the top 10 most expensive cities in which to rent in the U.S. (actually the 3 are in the top 7).
July 2021 – 1 Bedroom Median Rents
