Tuesday, November 29, 2011

Rental market is booming in the Bay Area!

Having a listing in Rockridge not only yields phone calls from potential buyers but phone calls from potential renters. I have had a dozen or so calls regarding my listings in Rockridge asking if there was a possibility of renting the house just in case it doesn't sell. Rockridge is a hot spot in Oakland where there is beautifully designed homes, great schools, BART and walking to restaurants so this area remains competitive for renters and buyers.

A friend of mine looking to rent in Oakland told me there was a mass flock of potential renters all vying for the same houses. Numerous applicants for each place they were looking to rent and even with superb jobs and great referrals they are having a tough time finding a place.  The rental market is strong throughout the Bay Area including the South Bay which is boasting a 12% increase in rents. In the East Bay, there has been an increase of about 10% depending on the area.

So why is this happening especially since it is such a good time to buy with record low interest rates? The bottom line is it’s still hard to get a loan. Banks are holding on tight to their money and making lending a back-bending challenge. With the job numbers still down, and the ever increasing financial issues happening around the globe, it looks as though banks are still nervous about the economy and still unwilling to loosen up on lending restrictions. The job market is actually increasing in the Bay Area which is another reason for the competitive rental market.