DALLAS, TX--(Marketwired - November 19, 2014) - The San Francisco Bay Area apartment markets, consisting of the Oakland and San Francisco metropolitan divisions and the San Jose Metropolitan Statistical Area, continued their robust performance in October 2014, according to Axiometrics, the leader in apartment market research and analysis.
Two of the three metros reported continued double-digit annual effective rent growth, while occupancy in all three MSAs was far above the national average.
"The apartment demand in these three MSAs has been phenomenal," said Stephanie McCleskey, Axiometrics Vice President of Research. "We might start to see some changes next year in San Jose and San Francisco with more new supply identified."
San Jose-Sunnyvale-Santa Clara's MSA reported an October annual effective rent growth of 11.53%, higher than the 11.17% reported in September. San Jose, in fact, took the rent growth lead among Axiometrics' top 50 markets nationally from northern neighbor Oakland-Fremont-Hayward, which was No. 2 with a respectable 11.47%, just a tick below September's 11.48%. Bringing up the rear was the San Francisco-San Mateo-Redwood City MSA at 8.74%, an increase from the 7.86% effective rent growth in September and No. 4 in the nation.
Residents in San Francisco paid $2,936.10 per month for an apartment unit in October, while in San Jose, they were paying $2,509.40. Meanwhile, in Oakland, residents were getting a relative deal at $2,057.50. Despite the increase in rents, October occupancy stood at 98.86% (Oakland), 96.73% (San Francisco) and 96.33% (San Jose). October 2013 occupancy was at 96.49%, 95.97% and 95.93%, respectively.
But McCleskey said that the Oakland MSA's less expensive rents might not last for long, especially given the few units there are currently in the pipeline.
"Oakland won't have much delivered in 2015, so watch for that metro to continue enjoying high occupancy and effective rent growth," she said.
About Axiometrics
Axiometrics improves property and portfolio performance for apartment investments. Confident investment decisions begin with reliable, timely information. No one has more accurate, detailed, and up-to-date research on the apartment and student housing markets. Learn more at www.axiometrics.com or by calling 214-953-2242.
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Ross Coulter
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ross@mpdventures.com
