It seems like after six long years of stagnant rental growth the East Bay has finally got a run up in apartment rents. Driven by the strong tech job market in San Francisco and a flourishing new art and restaurant scene in Oakland, rents are shooting up across Alameda county and specifically in trendy areas of Oakland.
Of the three biggest cities in the Bay Area, Oakland rent increases have toped the charts, most likely due to “spill over” renters who couldn’t afford apartments in San Francisco.
Sarah Bridge, president of RealFacts, feels that apartments in Oakland are still relatively inexpensive compared to apartments in San Francisco. She also keyed in on the fact that Oakland, as an urban core, offers some of the same amenities that San Francisco does. On a relative scale, Oakland rents are still about $800 a month less than San Francisco.
Big increases in 4 years
In 2008, rent of a three bedroom apartment in Lower Haight was $3,000 a month and a nice one-bedroom in a safe neighborhood in Oakland was $875 a month. Now those rents have almost doubled.
For apartment investors its been a long time coming at least in Oakland where some owners have not seen this kind of rent growth in nearly ten years. Its a great time to buy apartment buildings in the Bay Area even with rents rising as they are. Competition is fierce for well located properties but rent control can make it a challenge to manage and operate multi-family properties. I’m still a buyer even in this heated market!
This entry was posted in Investing in Multi-Family, Market Conditions, Property Management, Stories about Commercial Real Estate, Uncategorized · Tagged with san francisco bay area real estate, real estate in oakland, real estate investment, real estate trend in Bay Area, real estate trend in San Francisco, commercial real estate