Friday, October 30, 2015

Rental Market Update by Scott Safadi

After 5 years of double digit annual growth, the rental market in the Bay Area appears to finally be flattening out. There is always a seasonal slowdown at the end of the summer; however, in 2015, this slowdown came in early August, when things are usually peaking. Rent to income ratios remain at 2.5-3.0X comfortably, but one has to bear in mind that the majority of new renters today, tech employees, are making six digit salaries. The current bay area rents depend on this sector and the salaries it provides. One must ask how the others survive - those not making six digit salaries in tech. The reality is that they are being forced into areas and neighborhoods that they would not have considered living in before, or they are moving out of state.


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