We Bid Farewell to That Short, Sweet Period of San Jose Rent Decreases
Just when you thought the helium in the San Jose apartment market had finally escaped — thoughts perhaps generated by a couple months of studies finding rental declines — the online apartment finder service Abodo has detected an uptick.
Well, more than an uptick.
Rental prices over the last month have increased in San Jose more than anywhere in the nation, up 13 percent in Abodo’s November report for one-bedroom units. Such units averaged $2,591 a month compared to $2,293 in October.
Back in September Abodo’s report ranked San Jose, at No. 2, and San Francisco, at No. 7, among the 10 U.S. cities with the largest rent decreases. That month’s top 10 in decreases also included two other California cities, Los Angeles at No. 3 and Long Beach at No. 6.
Abodo spokesman Sam Radbil acknowledged the wild swings in San Jose’s rankings this year and said “we might soon see some relief for renters in the Bay Area and nationwide. New apartment developments, specifically micro apartments, are under construction and poised to come to market in 2017.”
San Jose has led the nation for the highest rent increases twice since the monthly reports began last April and been ranked in the top 10 three times overall. But it has also been listed three times as being among the top 10 cities for the amount of rent decreases, going as high as second in September, the first of two straight months the city made the top 10 in decreases.
“San Jose and other Bay Area renters are absolutely cost-burdened, as we uncovered in a previous study on the nationwide housing burden issues,” Radbil said. “It’s clear why 47 percent of renters in San Jose are spending at least 30 percent of their income on rent – the incredibly high price of a one-bedroom apartment, which increased by 13 percent from October to November of 2016.”
The table below shows how San Jose, San Francisco and Oakland have fared in the rental rankings.
Bay Area cities in the national Top 10 for rental increases or decreases by month
April
Increase: 1. San Jose +28 percent
May
Increase: 5. San Jose +5 percent
June
Decrease: 3. San Francisco -7 percent
July
Decrease: 2. Oakland -11 percent, 5. San Jose -8 percent, 7. San Francisco -5 percent
August
No Bay Area cities in either Top 10
September
Decrease: 2. San Jose -12 percent, 7. San Francisco -6 percent
October
Increase: 6. Oakland +5 percent
Decrease: 5. San Jose -7 percent, 6. San Francisco -6 percent
November
Increase: 1. San Jose +13 percent
Source:
http://www.bizjournals.com/sanjose/news/2016/11/16/remember-that-short-sweet-period-of-rent-decreases.html
