Huntington Beach, CA
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Here are the top 25 cities with the highest rent decreases. Though rents increased an average of 3 percent nationally last year, Apartmentguide.com found the top 25 cities where annual rents have declined. What surprised Brian Carberry, Apartmentguide’s managing editor who crunched the numbers was, “some of the areas with significant rent decreases were located near more expensive major cities.” Apartmentguide.com looked at annual average price declines on one-bedroom nationwide.
Cities included in the top 25 rankings are Virginia Beach, Virginia, West Hartford, Connecticut, Santa Rosa, California, Huntington Beach, California, and Montgomery, Alabama. Do keep in mind a number of the cities on this list are not the cheapest to live in.
Take the Boston suburb of Peabody. Located 13 miles north of Boston, Peabody saw an 18 percent decline to an average monthly rent of $2,276. That was a $512 price drop. Consider this is the average price. You can find lower rents. A recent listing on Apartmentguide.com shows two available one-bedroom one-bath apartments from $1705 to $1730. The apartments are newly renovated. This pet-friendly community features a swimming pool, tennis courts, and resident-only playground.
“People are finding that suburban housing is becoming more affordable and desirable,” Carberry notes. Look to suburban desirability to increase as more companies transition to a remote workforce.
Heading west to California it is surprising to see five cities made the top 25. Santa Rosa, about an hour drive north of San Francisco, posted a 19 percent decrease with the average rent at $1,980. I found an available 692 square foot one-bedroom there for $1,849. Renters will find a fitness center, tennis courts, and a pool on the property.
Consider West Sacramento one of California’s fastest-growing cities was at number one with a hefty rent decrease of almost 44 percent. The average price for a one-bedroom there fell by $1,628 to $2,115. In Southern California, Huntington Beach long known for surfing and casual living saw a 22 percent decline with the average one-bedroom renting for $2,194.
The east bay city of Berkeley, home to the University of California, Berkeley also saw a dip in rental prices. Berkeley ranked number twelve with a 22 percent decrease. Don’t expect bargain prices thanks to the evergreen demand of college students and faculty opting to live there. The average one-bedroom is still pricey at $2,457. The apartment rental stock in Berkeley is older with proximity to campus commanding a premium.
Oceanside, California a beachside city about 38 miles north of San Diego is at number six. A hefty 26 percent rent decline brings the average one-bedroom down to $1,958.
Montgomery, Alabama, USA with the State Capitol.
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For lower rents look at Montgomery, Alabama where $662 is the average monthly rent is down 22 percent. The rental dollar goes far there. A 935 square foot apartment with pool starts around $700.
Carberry’s advice for renters, “Even some higher-priced areas are seeing declines and becoming more affordable. There was a construction boom in luxury rental properties around the country. Today they might have trouble filling those units. You may be able to negotiate a better rent because of that.”
Well, that’s good news for renters and not so good for multi-family owners