Most California Cities See Median Rent Decline After Years Of Gains

SAN FRANCISCO — Renters throughout the Bay Area are reacting to the news that the median rent in the area has declined after years of gains.

According to a monthly rental report published by the website Realtor.com, the median asking price for rent fell 4 percent from $2,963 to $2,844 in the San Francisco-Oakland-Hayward region this May compared to last May.

While those in the San Francisco-Oakland-Hayward region might be feeling some relief, those living in the San Jose-Sunnyvale-Santa Clara region saw prices rise by one percentage point from $3,314 to $3,347, the study showed.

Other regions in the state showing a decline in rent rates were the Riverside-San Bernardino-Ontario region which saw the largest year over year decrease in the nation at 5.9 percent, Sacramento–Roseville–Arden-Arcade which saw a 3.5 percent decrease, Los Angeles-Long Beach-Anaheim which saw a 2.6 percent decrease and the San Diego-Carlsbad region which saw a 0.6 percent decrease.

"The decline in rent will bring a sense of relief to renters who have been grappling with financial challenges throughout the past years," Realtor.com said. "In addition, as rent increases were more pronounced for new renters, many existing tenants chose to avoid higher costs by renewing their leases and staying where they are."

According to the Realtor.com report, the decline in rent prices could be seen as "a wake-up call for renters who have desired to explore regions abundant with job opportunities but have been hesitant to do so due to the excessively high" move-in rental costs.

"In other words, if sustained, this shift in trend could potentially ignite an increase in renter mobility," the report said.

According to the report, across the country, the median asking price for rent in the country’s 50 largest metros was $1,739 in May. That’s $38 lower than the peak median rent of July 2022, but still $344 higher than in May 2019, leaving most renters with little to no relief when it comes to rents.

The report also shows the Bay Area remains one of the priciest markets in the country even though prices there were cooling faster than its northeast counter parts.

In May 2023, the median rent in the West was 3.0 percent lower than a year ago. San Jose, CA (1.0 percent) was the only large western metro seeing rent growth, but the growth rate was only one twentieth of what it was a year ago (19.3 percent).

"In contrast, rents in populous northeastern metros such as New York, NY (6.8 percent), Pittsburgh, PA (3.8 percent), and Boston, MA (3.3 percent) continued to experience faster growth," the report said.

The San Jose region registered the highest median rent in May out of all 50 metros the report tracked followed by San Diego-Carlsbad at $2,966, San Francisco-Oakland-Hayward at $2,844, Los Angeles-Long Beach-Anaheim at $2,833, Riverside-San Bernardino-Ontario at $2,302 and Sacramento–Roseville–Arden-Arcade at $1,847.