Great news for renters in some of California‘s major cities like Oakland, San Jose, San Diego, and San Francisco! Rent prices are finally dropping in these expensive metropolitan areas.
A recent report by Zumper, a digital marketplace, looked at over 1 million property listings in 100 cities and found that seven out of the 11 Californian cities studied saw a decrease in rent prices between 2023 and 2024.
Among them, Oakland reported the biggest annual drop in rent at -9.1%. Other cities with declining rent prices included Sacramento, Los Angeles, San Jose, San Francisco, San Diego, Long Beach, and Santa Clara.
Interestingly, San Jose-Sunnyvale–Santa Clara was identified as the most expensive large metro area for renters in the U.S., with a median rent of $3,451. Three other California cities also made it to the top four in terms of expensive metros.
Though rent prices across the U.S. are generally on the rise, there has been a decrease in demand in several Californian cities, contributing to the drop in rental prices. This trend is not limited to California, as many other U.S. cities, especially those in the Sun Belt, are experiencing similar changes.
It’s important to note that factors such as population loss, unemployment rates (California had a 5.3% unemployment rate in April), and specific market dynamics in cities like San Diego and Sacramento play a significant role in shaping the rent market.
So, while there may be some relief for renters in California currently, it’s essential to keep an eye on the broader economic and demographic factors that continue to influence the rental landscape.