California cities continue to dominate list of most expensive places for home rentals
Date
11/14/2024 8:05:33 AM
(MENAFN) California cities continue to dominate the list of the most expensive places for single-family rentals in the U.S., with 18 of the top 20 costliest cities located in the state. According to a recent report from Rentometer, a Massachusetts-based rental data website, eight out of the 10 most expensive large cities, those with populations over 250,000, are in California. San Francisco remains the most expensive large city, with average monthly rents for single-family homes reaching USD5,409 in the third quarter of 2024.
The report also highlighted the rising rental costs in mid-sized cities, where all the top 10 cities for high rental rates, including Huntington Beach in Southern California, are located. Huntington Beach tops the list for mid-sized cities, with an average rent of USD5,724 per month. The growing demand for rental properties, both in suburban and urban areas, is being driven by high mortgage rates and rising home prices, which have made homeownership out of reach for many potential buyers, forcing them to remain in the rental market.
This trend in California is part of a broader national pattern, where single-family rental prices have risen by 3 percent year-over-year. However, California cities are seeing significantly higher growth, with rental prices in the Pacific region, including major cities like Los Angeles and San Diego, increasing by an average of 6.5 percent. The rising rental prices reflect the ongoing pressures in the housing market, where demand for rental homes continues to outpace supply.
The report analyzed rental markets across 757 U.S. cities, showing that California's housing market growth is outpacing national trends. This has led to an increase in both the number and cost of rental properties, as more people are opting to rent rather than purchase due to the affordability crisis in the housing market. The trend is expected to continue as high demand for rentals persists, particularly in California's major metropolitan and suburban areas.
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