Bay Area Rents Likely To Stay Sky High
Source: mercurynews.com | Re-Post MNM Partners, LLC 3/1/2018 –
Bay Area renters hit with high prices and few choices last year may be in for more of the same in 2018.
Rates for one- and two-bedroom apartments in San Francisco, Oakland, and San Jose last year stayed among the highest in the nation, according to new market reports. Scarce rentals and a robust local economy marked by steady tech hiring drove up Santa Clara County prices 3.2 percent from a year ago, according to real estate data firm Yardi Matrix.
“We think it’s going to continue. People aren’t going to rush out and buy new houses,” said Doug Ressler, senior analyst with Yardi Matrix. Five of the top 10 most expensive U.S. cities to rent were in the Bay Area, and all saw prices increase year-to-year.
Ressler said the strong interest in the rental market is backed by a desire from young workers to rent rather than own, the new federal tax plan reducing deductions for mortgage interest and state and local property taxes, and a lack of other federal incentives to encourage homeownership.