“Survey says” examines various rankings and scorecards to evaluate geographical locations. It is important to note that these grades should be seen as a combination of subjective interpretation and objective data.
Buzz: When it comes to finding an apartment in California, three coastal markets are the most challenging, while two Bay Area markets are the easiest.
Source: My evaluation of RentCafe’s study, which analyzed 139 markets nationwide, with a focus on the California region.
Topline
What makes a town a tough rental market? Let’s compare California’s six most competitive markets with its six least competitive ones.
All six of the hardest-to-rent markets－San Diego, Central Coast, Orange County, Silicon Valley, Central Valley, and Eastern LA County－received above-average competitiveness grades on a national scale. San Diego ranked 18th in terms of competitiveness, while OC was ranked 19th.
Consider the following measurements…
Empty units: In the most competitive markets, there is a 3.9% vacancy rate, compared to 5.7% in the least competitive markets.
Vacancy length: How quickly do tenants need to act? Units in the most competitive markets stay vacant for 38 days, while it’s 42 days in the least competitive markets.
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Number of prospective tenants: How many people will you be competing against? In the most competitive markets, there are 15 prospective tenants per unit, compared to 11 in the least competitive markets.
Renewal rate: A measure of popularity, with 52% of tenants staying in their unit in the most competitive markets, compared to 48% in the least competitive markets.
Details
Here are the 12 California rental markets, ranked according to RentCafe’s “competitiveness” scale, along with key variables that influenced the grades…
San Diego: 4% vacancy rate, 33 days vacant, 17 prospective tenants per unit. Renewal rate: 51%.
Central Coast: 3% vacancy rate, 38 days vacant, 17 prospective tenants per unit. Renewal rate: 51%.
OC: 4% vacancy rate, 40 days vacant, 13 prospective tenants per unit. Renewal rate: 61%.
Silicon Valley: 4% vacancy rate, 34 days vacant, 14 prospective tenants per unit. Renewal rate: 51%.
Central Valley: 4% vacancy rate, 39 days vacant, 10 prospective tenants per unit. Renewal rate: 53%.
Eastern LA: 4% vacancy rate, 41 days vacant, 20 prospective tenants per unit. Renewal rate: 43%.
North LA /Ventura County: 4% vacancy rate, 41 days vacant, 13 prospective tenants per unit. Renewal rate: 50%.
Inland Empire: 6% vacancy rate, 44 days vacant, 12 prospective tenants per unit. Renewal rate: 53%.
Sacramento: 5% vacancy rate, 43 days vacant, 11 prospective tenants per unit. Renewal rate: 51%.
Western LA County: 6% vacancy rate, 40 days vacant, 11 prospective tenants per unit. Renewal rate: 38%.
East Bay: 6% vacancy rate, 40 days vacant, 10 prospective tenants per unit. Renewal rate: 48%.
San Francisco Peninsula/North Bay: 7% vacancy rate, 41 days vacant, 9 prospective tenants per unit. Renewal rate: 49%.
Bottom line
This scorecard highlights two common themes in California real estate.
First, units closer to the coast tend to be more challenging to find. Second, in the era of the pandemic, the Bay Area seems to have more properties available for rent.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]
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