Living in the Bay Area can be pretty expensive, but Zillow study released this month — with data charting an uptick in landlords offering incentives to renters — shows that it might be a good time to move into an apartment.
In San Jose, according to the study, 51% of apartments are offering deals to potential renters. That number is about 40% in San Francisco, which is much higher than before the pandemic.
Those incentives include things like discounts on utilities or even a free month.
“It’s very attractive,” said San Jose resident Naveen Ramachandran. “It’s a very attractive option.”
Ramachandran moved into a north San Jose apartment two weeks ago after searching around for a deal.
“Sometimes they ask you to sign a 12-month lease or a 13-month lease, but they give you a second or third month off, so that basically reduces the money for one month,” Ramachandran said.
As for why this is happening, Zillow points to the low interest rates over the past few years. that has led to a construction boom, according to the report, meaning more units are available now.
The trend is also being seen nation-wide, where the rental vacancy rate has climbed above 60%.
“Winter is typically the best time to move if you rent and are looking for a deal, since many people prefer to avoid apartment hunting during the holiday season,” said Zumper spokesperson Crystal Chen.
Bay Area rental prices are still holding steady in the, though, according to Zumper. The exception is San Francisco, where a one bedroom averages about $2970 per month, which dropped nationally to the fourth highest.
“Rens are down on all fronts in San Francisco,” said Chen. “Both month-to-month and year-over-year in one and two bedrooms.”
Ramachandran also believes tech layoffs have led some apartments scrambling to fill vacancies.
“Especially during these times when the economy is ebing impacted,” Ramachandran said, “I think that’s the time where they try to reduce rent to catch more people. “
Source: NBC Bay Area
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