Blog

Expect The Same For 2013-14 – Spiking Rents

Here’s an update on what to expect for rents in 2014. We are expecting to see a bit smaller increase in rents. In 2013 there were a 13% increase. In 2014 expect an 8-10% increase. It’s getting so it is almost cheaper to buy a home than to rent one. Interest rates are still low in the 5% range, (historically interest rates range between 6-8% on average).

Inventories are low for rentals as well as homes to buy. Having the tax advantage of home ownership still pencil out better for the consumer than paying rent. We are always here to help you in any of your real estate needs. Free MLS list of homes for sale: http://SFBayHomes.com

Rents are spiking and will continue to do so in 2013 and 2014.  So expect the same for 2013-14 – spiking rents. If you are thinking about purchasing a home however it doesn’t fit into a stable 5 year plan you have set up for yourself than continuing to rent is a good thing.

Rents have been going up for the past 3 years and will continue to do so in 2014. According to Trulia, a real estate website, it doesn’t matter if you plan to buy or rent in 2014 you are going to pay more than you did in 2012.

Asking Price 2012:

UP   7.6% – Napa County

UP 16.3% – Silicon Valley/Santa Clara County

UP 9-13% – Bay Area Counties

UP 15.0% – San Mateo Counties

UP   5.1% – Nationwide

Reasons: Job Growth and Tight Inventories!

San Mateo County also experienced price increases all year and at a steady rate from the beginning of the year to the end of the year. We saw a housing market recovering from the extended downturn from 2007. And, California statewide saw a rebound in prices in the markets hardest hit by the recession like Oakland Metro, Sacramento, and Fresno.

 Rents 2012:

UP – 13.2% Alameda County (highest in Bay Area)

UP – 02.9% San Francisco (Rent Control, lowest)

Average Rent Increases for Bay Area Counties 2012 (except Napa Co.):

UP – 7.8% Average Rent Increase

UP – 9.9% San Mateo County

UP – 4.5% Santa Clara County

UP – 5.2% Nationwide

What do these numbers mean? If you don’t own a home your rent is going to go up. Even renters who have been in their homes for several years can expect to see their rents go up. Communities who passed parcel taxes will probably see the strongest increases as those added costs would be passed on to the tenants.