Bay Area renters looking to flee high prices aren’t looking far

When San Jose renters are looking to get out, they turn to San
Francisco and the East Bay. And when San Francisco metro dwellers
want to flee, they look to San Jose.

An analysis released this month by Apartment List found Bay Area
renters looking to move are searching other local cities far more
often than out-of-state tech hubs like Seattle, Portland or Austin,
Tex.

Apartment List economist Chris Salviati said the analysis, based
on more than a million online searches across the country, gives a
strong signal about where renters want to move. Bay Area renters,
he said, mostly want to stay in the Bay Area.

“There’s certainly turnover, and there’s certainly folks
looking to leave,” he said. But, he added, most often high rents
are “driving people more to the outer limits of the
region.”

The soaring Bay Area economy, with expanding tech businesses
adding more and more jobs, has been matched by rising housing
prices. Rents in the Bay Area have risen steadily in the last five
years. The median rent in May for a two bedroom apartment in San
Jose was $2,650, in San Francisco $3,100 and in Oakland $2,200,
according to Apartment List.

Just over half of San Jose apartment hunters looked to leave the
metro area, according to the survey. But they weren’t looking far
— residents were most likely to search for rentals in San
Francisco and the East Bay (39.3 percent), Sacramento (6.9 percent)
and Los Angeles (6.3 percent).

Across the country, renters looking to move to San Jose were
usually searching from San Francisco and Oakland (43.6 percent),
Sacramento (7.3 percent), or Stockton (5.0 percent).

About 54 percent of the searches by San Francisco and Oakland
residents were for another rental in their cities. Those San
Francisco metro residents looking to move farther checked out
apartments in San Jose (24.4 percent), Los Angeles (7.6 percent)
and Sacramento (6.5 percent).

Across the country, renters looking to move into the San
Francisco metro were mostly searching from San Jose (20.9 percent),
Sacramento (8.5 percent) and Stockton (7.9 percent) according to
Apartment List.

Salviati said searches from people outside the Bay Area looking
to move into the region have decreased since 2016. The searches are
a strong signal of where people move, he said.

Nationally, the East Bay and San Francisco market is one of the
top regions attracting renters from elsewhere, with 44 percent of
searches coming from outside the area. But residents in those
cities were also among the most active in the nation looking
outside their metro.

Tampa and Denver were the most popular cities in the country for
apartment hunters coming from elsewhere. Renters in Orlando and
Detroit were the most eager to search outside their cities.

Jeffrey Buchanan, director of public policy at Working
Partnerships USA, said escalating Bay Area prices caused by a
housing shortage have put more stress on renters. Many have strong
ties to the region — families, jobs, schools and other support
— that make it difficult to leave, he said.

But moving farther away from Bay Area cities — bringing longer
commutes but cheaper rents — is a choice many families have been
forced to make, he said.

“We constantly hear about families facing an eviction notice
or a rent increase and they’re looking to move,” he said.
“All of these things create additional stress, especially for
families with young children.”

Source: FS – All – Real Estate News 1
Bay Area renters looking to flee high prices aren’t looking far