Ask anyone what Bay Area city has the highest rent and the answer has almost always been San Francisco. But, it appears that just changed.
A new report shows Mountain View is now the most expensive city in the region to rent a one-bedroom apartment.
The city saw a nearly 24% increase in rents compared to the year before. One reason? Experts said more high tech companies are requiring employees to head back to the office.
“This is the first time Mountain View has surpassed San Francisco,” said Crystal Chen of Zumper.
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A new report from the company showed Mountain View had the highest average in January with the median price of $3,130 for a one-bedroom.
San Francisco has the second highest rents in the Bay Area.
For some perspective, the median price for a one-bedroom apartment in San Jose is $2,530 and the most affordable city is Vallejo where the median rent is $1,600.
So, why is Mountain View suddenly seeing the spike? Companies, particularly Google may be playing a role.
“I think with big tech companies having return to work policies a lot of those workers are coming back to California and moving down to the Peninsula which creates demand and drives up prices,” said Chen.
Other factors could be that most of the new units in Mountain View are luxury apartments.
Derrick D’Acolatse, owner of Legacy Property Management Silicon Valley said our economic climate is also keeping people from buying homes. Meaning more are looking to rent.
“I believe interest rates are having an impact on rental increases on prices,” he said.
And with more demand, and limited supply, renters may be looking at bidding wars.
“People are willing to pay $100 to $200 a month over asking price just to get a property,” said D’Acolatse.
With many apartments in the city renting in a week or less.
Which is why property managers said if you want to rent in Mountain View, you may want to submit an application first and then go look at the unit because you may have to compete against dozens of other potential renters.
