New numbers show Mountain View rental prices are skyrocketing -- up nearly 15% compared to last year.
A property manager said the demand for rentals is so high there, sometimes more than 50 people will show up just to see one rental.
Median rent for a one bedroom is hovering above $3,500, nearly 15% higher than last year, according to a new report by real estate company Zumper.
The question now is, what’s behind the price hike?
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One theory is that more tech giants on the Peninsula, including Google, are requiring workers to head back into the office post pandemic.
“As tech workers are returning to the office, really puts pressure on rent prices,” said Crystal Chen of Zumper.
With demand high and inventory low, renters are finding new ways to compete for housing.
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“We’ve had a couple units where they're re offering $200-$300 over the asking rent just to make sure they get it,” said Rosemary Handa, property manager at Legacy Property Management.
She said competition for rental houses is fierce.
“I just showed a house and there was probably 50 people interested and we got five or six applications within the first hour of showing it,” said Handa.
As rents jump on the Peninsula, in San Francisco, they‘re dropping. The median price for a one bedroom in the city is $2,900 dollars down more than 3% compared to last year.
In San Jose, the median price for a one bedroom rental dropped more than 3%.
In Oakland, rental prices are down more than 11% compared to last year.
Which Bay city saw the biggest drop in rental prices?
“Menlo Park definitely had our largest year over year decline for rent prices with one bedroom apartments down about 24%,” said Chen.
One theory is that after thousands of employees were laid off from Meta in Menlo Park, some may have opted to move to more affordable areas.
But now, they may be priced out of Mountain View too.
So property managers suggest that those looking for a rental there, should constantly check for new listings and try to be the first to submit an application.
