California rents fall 5 straight months. Where was the biggest drop?

”Survey says” looks at various rankings and scorecards judging geographic locations while noting these grades are best seen as a mix of artful interpretation and data.

Buzz: California big-city rents fell for the fifth consecutive month in January.

Source: My trusty spreadsheet looked at January estimates compiled ApartmentList of lease rates for new tenants in 50 large California cities.

Topline: California big-city rents ran $2,088 in January, according to my populated-weighted average of the 50 cities. That’s down 0.5% from December as the economy cools and the urge for larger living spaces dips. Since 2018, January rents have averaged 0.1% one-month gains.

Also, do not forget that rents statewide are still up 1.5% vs. January 2022 and are 12% above what landlords charged in pre-pandemic January 2020.

And the pandemic’s inland rush created three-year rent hikes of 30% or more in eight markets, all in Southern California: Murrieta (up 40%), Escondido (36%), Moreno Valley (35%), Chula Vista (34%),  Carlsbad (33%), Pomona (32%), Ontario (31%), and Riverside (30%).

Big drops

One month: Vista was off 2.5% to $2,196, Irvine off 2.3% to $2,996, and Santa Rosa off 1.9% to $1,818.

12 months: Roseville was off 4.4% to $2,105, Ventura off 3.8% to $2,048, and Costa Mesa off 3.5% to $2,461.

3 years: Oakland was off 15% to $1,613, San Francisco off 13% to $2,174, and Berkeley off 10% to $1,740.

Big hikes

One month: Glendale was up 1.3% to $2,100, Pomona up 1.1% to $1,894, and Fresno up 0.8% to $1,311.

12 months: Santa Clara was up 8.7% to $2,631, Escondido up 6.8% to $2,177, and Hayward up 6.5% to $2,173.

3 years: Murrieta was up 40% to $2,411, Escondido up 36% to $2,177, and Moreno Valley up 35% to $2,129.

Extremes

Highest rent: Mission Viejo at $3,004, Irvine at $2,996, and Carlsbad at $2,969.

Lowest rent: Fresno at $1,311, Oakland at $1,613, and Sacramento at $1,615.

The top 10

California’s most-populated cities in January had seven one-month drops, three one-year drops, and two three-year declines …

Los Angeles: $1,870 monthly, down 0.3% in a month, up 1.1% in a year, and up 6% in three years.

San Diego: $2,328 monthly, down 0.7% in a month, up 3.8% in a year, and up 26% in three years.

San Jose: $2,370 monthly, down 0.4% in a month, up 4.9% in a year, and up 2% in three years.

San Francisco: $2,174 monthly, down 1.1% in a month, up 0.6% in a year, and down 13% in three years.

Fresno: $1,311 monthly, up 0.8% in a month, up 2% in a year, and up 25% in three years.

Sacramento: $1,615 monthly, down 0.6% in a month, down 2.1% in a year, and up 19% in three years.

Long Beach: $1,662 monthly, down 0.7% in a month, up 2% in a year, and up 15% in three years.

Oakland: $1,613 monthly, down 0.9% in a month, down 3.3% in a year, and down 15% in three years.

Anaheim: $2,243 monthly, up 0.3% in a month, up 4.1% in a year, and up 26% in three years.

Santa Ana: $2,115 monthly, up 0.3% in a month, down 0.6% in a year, and up 22% in three years.

Bottom line

The rental market continues to tilt toward the tenant.

Yes, rents fell in 72% of the 50 cities last month, but that’s down from 84% the previous month.

Also, consider January’s 0.5% one-month rent dip is the smallest since September when the downtrend began.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]