Monday, March 9, 2009

Rents falling...

Jon Lansner over the the O.C. Register had this update regarding falling rents from Axiometrics:

Axiometrics figures show. Nationwide, effective rents fell 4% since August, dropping to an U.S. average of $930 a month. In California metro areas, six-month rent drops ranged from 3.3% in Salinas to 7.2% in the San Jose area. (Chart shows average effective rents per month and six-month percentage changes by metro area!)

A chart was also posted showing that rents for Los Angeles county dropped 6.2% in the last 6 months and dropped in Ventura County down 6.0% in the last 6 months. Vacancy rates for O.C. were also rising dramatically and while Jon didn't post the data for Ventura and Los Angeles it is safe to assume that local apartments are also seeing a dramatic rise in vacancy.

Rents are much more directly tied to wages and the underlying economy. And I think this is a reflection of how weak things are getting. I think the next step will be an even bigger migration from California to cheaper living areas.


djviking said...

Thanks as always great info. As far as the migration away from california...I can't help but say.....yaaaaaaayyyy! For me i'll never leave...sooner camp here than live in a pink stucco box in vegas.

Anonymous said...

I agree...I'd never go to Vegas and live...but to not leave California?

Perhaps there are few places in the US that maybe more "desirable" than California and that's very subjective.

But frankly, So Cal sucks hard. No Cal is locally good...the rest is crap.

There are far far better places to live than California. I won't even mention the rest of the US.

But granted, while I'm here, I don't mind one bit more people leaving this place.

Effective Demand said...

The thought that people will start leaving California is a prediction. People could continue to double and triple up in homes and apartments.