With the COVID-19 pandemic now in its fifth month in the US, analysts are looking at how the virus is affecting the rental market.
According to an Apartment List report, rents are coming down in seven of nine Bay Area counties. San Francisco saw the largest decline with rents dropping 2.2%,. Santa Clara County – home of Silicon Valley, saw apartment prices go down 1.6%. And San Mateo County saw a drop of 1.2%. For East and North Bay Counties Alameda, Contra Costa, Solano and Sonoma, declines were less severe, going down less than 1%. Marin and Napa county saw no declines.
What does this mean for the Bay Area rental market? According to analysts at Apartment List, the most expensive areas near San Francisco are seeing rents fall fastest. With Twitter and Facebook announcing permanent changes that allow for flexible working arrangements past the pandemic, analysts anticipate a migration of tech workers to more affordable counties further away from the home office.
Although rents in Sonoma County average around $1,900 for a two-bedroom, it is approximately $1,700 less than a comparable size apartment in San Francisco.
Another factor affecting rental price decline is migration. With renters across the nation hunkering down during the pandemic, staggering job losses and eviction moratoriums in select markets, people just aren’t looking for new apartments. Demand is low and prices may be starting to reflect this.
Read more of the report on ApartmentList.com.
To see some apartments currently on the market in Sonoma County, click through our gallery above.
