The latest data from the Apartment List National Rent Report shows that rent prices in several major California cities continued to fall in September 2024. This trend aligns with the broader national slowdown in rent growth, as rents decline across much of the country.
According to the report, rents in Los Angeles dropped by 0.5% last month, contributing to a year-over-year decline of 2.2%. San Diego also saw a 0.3% dip in rents from August to September, and a more significant 3.1% drop compared to the same time last year. While rent prices in San Jose also decreased 0.5% month-over-month, the city still saw a year-over-year increase of 2.3%, bucking the trend of falling prices seen in many other major markets.
Nationally, the report highlights that rents declined by 0.5% in September, and year-over-year rent growth has been in negative territory for over a year. The national median rent is currently $1,405, reflecting a 0.7% decrease from one year ago.
California cities have been no exception to this nationwide trend, with many markets experiencing falling rents as the state’s rental market adjusts to higher vacancy rates and an influx of newly completed apartment units. This increase in available housing, particularly in cities like Los Angeles and San Diego, has provided renters with more options, likely contributing to the observed price decreases.
While the report suggests that rents may continue to fall in the coming months, it also points to differences in how various regions are affected. The Sun Belt has seen the steepest declines, but cities in the Midwest and Northeast are experiencing more modest rent growth.
Click here for more details from the report.