Rents in this East Bay city are dropping, according to data
(KRON) — While rent prices in most Bay Area cities are on the rise, one East Bay city is seeing a decline. Data from Apartment List found that Oakland’s asking rents fell by 10% in the last year.
The data from Apartment List found that the median asking rent for a one-bedroom in January of 2019 was about $2,400 a month. That same apartment in April had a median rent of $1,800 a month.
That 10% drop in rent prices in Oakland has got people’s attention.
Andrea Rentals is located in the city and helps match renters with tenants. Owner Andrea Day said rent prices usually go up in May, but that’s not what’s happening in the East Bay.
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“It’s taking longer, people are being more choosy,” said Day. “It’s a bit of a different game this year and it’s taking us a bit by surprise.”
While Oakland rents for apartments are more affordable this summer, Day says location still matters. There’s been a decline in monthly rent in downtown Oakland compared to other areas.
“There are places where previously the rents were sort of really pushing the tippy top of the market that have really fallen, but then there are other areas kind of out by the Oakland Zoo or Mills, where you are seeing an increase in rents,” Day said.
There are also more incentives being offered to tenants in Oakland. At some locations, Andrea Rentals offers a month free as long as tenants sign their lease by a certain date. Day says that’s because of the 2.3 percent rent cap in the city.
“If you have a place that’s rented for $2,400 and you say we aren’t finding anybody and you just drop it, it will take you years to recover because you can only incrementally raise it unless it’s a single-family home or new construction,” she said.
Data from Apartment List also found that people working from home had an impact on rent prices. Less people working in downtown offices has less people choosing to rent in Oakland’s downtown.
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