Just because it’s a bad time to be a homeowner doesn’t necessarily mean that it’s a good time to rent an apartment.
While homeowners are dealing with the plummeting value of their houses, renters throughout the western part of the United States are writing larger checks to pay for their leases, according to a report released today by the research firm RealFacts.
The average apartment rent rose in March from the previous year in all 19 major Western markets surveyed. Meanwhile, home prices have plunged 10 percent to 30 percent, depending on the particular market.
Analysts have a theory that landlords have been able to raise rents as more people lose their homes to foreclosures and must find somewhere else to live in a hurry.
According to the survey, San Jose is now the most expensive rental market in the West, with the average apartment renting for $1,660 per month, up 9.1% from the same time last year.
However, the cost of renting a Silicon Valley apartment is still well below the peak of $1,959 per month reached in early 2001 at the tail end of the dot-com boom.
California apartment rent averages are also above $1,500 per month in Los Angeles and Orange counties, Ventura County and San Francisco/Oakland.
Outside of California, the West’s most expensive rental market is in Seattle, where the average apartment lease climbed 8.5% to $1,090 per month.
Where are the least expensive apartments in the west? Tucson, Arizona, with rents creeping up only 2% to $668 per month.