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You are here: Home / Rentals / Surprise! Bay Area Rentals to Continue to Increase in 2016

Surprise! Bay Area Rentals to Continue to Increase in 2016

January 21, 2016 By Geoffrey Disch Leave a Comment

As we reported earlier in the month (Rents Continue To Increase Faster Than Incomes) rents are going up and the San Jose Mercury News believes this trend will continue for the foreseeable future. Analysts are projected a 7 percent increase in 2016, this on top of 2015 increases of 10 percent in San Francisco, 11 percent on the Peninsula and 12 percent in the East Bay.

Part of the reason for the continued increase is the number of new units in the area. Of course, developers want a return on their investment as soon as possible and the strong demand only serves to drive up prices even higher.

For many, of course, the sharp increases are simply out of their price range and they move away, often times out of state. For others, they continue to hope that the housing market has reached it’s peak and will stabilize – soon.

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