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The Californian rental market

The Californian rental market

The Californian rental market

Flat for Rent but don’t dare do any cooking!

An advert for a Amsterdam apartment comes with a surprising codicil,“The kitchen is fully equipped, except for a cooking plate. Cooking is explicitly not allowed in this apartment due to regulations.”.
The Guardian gives the full story in their article.

Another landlord stipulated that although cooking was allowed it had to be done in less than 30 minutes and absolutely no pork.

Is the demand for rentals going to landlords heads? The Californian rental market is under a lot of pressure. Home ownership has declined to 53% down from a 60% peak in 2006 which obviously translates to more renters.

The historical rental vacancy rate has an equilibrium of 5.5% but that has fallen to 3.6%, so this low rental vacancy rate has contributed to increasing rental rates.

The law currently states that when a tenant leaves aren’t controlled unit the landlord is allowed to raise the rent to the new market rate which raises the rent control floor. Also under current law rent control does not apply to any housing built after 1995.

Democratic Assemblyman Richard Bloom is trying to abolish these restrictions.

“During this past 20 years, the affordability of housing has gotten worse and worse – it’s like there’s no end in sight.”

Bloom said. “We are at a time in California when, for the first time, the majority of people’s quality of life is diminishing because so much of their income is going to pay for housing.”

Sacramento had the fastest growing rental market with a year on year increase of 11%in 2016 and across the last decade rents have increased by 36%.

Apex office centers in the Sacramento/Roseville area are holding their rents stable and have only made one increase in the last 10 years. We are doing our bit……

Contact Us if you need an affordable virtual office with full administrative services.

 

~ The Apex Office Centers Team ~