Bakersfield, California 2021-07-17 21:30:00 –
Local renters seem to be looking for worse news — or at least the same.
Just a few weeks ago, a survey of local rental units found that lower vacancy rates in the city made finding rental apartments in the city more difficult than ever.
Renters who are currently moving to Bakersfield from other metropolitan areas, or at least considering moving, seem to spend too much on their rent.
An analysis by Rob Warnock, Senior Research Associate at Apartment List, found that the pandemic restrictions were relaxed and that Americans are moving again, such as in Metro Bakersfield.
“This means not only will more people move, but today’s migrants will have higher incomes and higher budgets than ever before,” Warnock said in an email. “This puts more pressure on already competitive markets (such as Bakersfield) and contributes to higher rents.”
In the second quarter of 2021, 27% of apartment searches in Bakersfield came from suburban apartment searches.
It’s not terrible news in itself. The share of inbound “suburban” search interests in Bakersfield is actually fairly stable.
In the same quarter of last year, the percentage of beginners was 27%, but in the second quarter of 2019 it actually increased to 32%.
“This migration process is putting pressure on local rents, because the budgets of these movers are higher than existing residents looking for new apartments,” Warnock said.
Mark Thurston, a multi-family home broker at ASU Commercial, a major observer in the local market, said he was looking at renters from all over the United States considering Bakersfield as a relocation destination.
“Many of these new residents are migrating from communities where they can’t save money or buy a home because of the high cost of living, so living expenses are very attractive to these new residents. I think it is, “says Thurston. .. “Working remotely and saving money is a fascinating attraction.”
According to Warnock, these “suburbs” searches in the last quarter came from all over the world, but of course most of them came from Southern California.
“Orange County is actually the biggest contributor, accounting for 20 percent,” he said. “LA County accounts for an additional 14 percent.”
The rest of the non-SoCal search is scattered across many regions, including Northern California, Las Vegas, and Texas.
What does this mean for local renters looking for an apartment?
According to Thurston, existing local renters who haven’t been actively looking at the rental market for the past two years will experience a sticker shock as they begin to look around the various apartment communities.
“Strong demand from out-of-area renters and a lack of new supply have led to rapid rent growth,” he said.
Tenants relocating to Bakersfield may find the current asking rents to be very attractive compared to what they see in the cities they leave.
Ian Sharples, director of the Kahn Income Property Association, said he saw many people migrating to Bakersfield from the so-called Riverside-San Bernardino and Riverside counties.
The valley community continues to attract people looking for new opportunities in a low-cost environment.
But that’s not a new trend.
“I think this happened before the pandemic,” Sharples said.
At the national level, this migration trend is putting pressure on rural rents, as the budgets of these movers are 18% higher than existing residents looking for new apartments, according to data from the Apartment List. ..
One of the silver linings for local renters is that the difference here is not that wide.
Similar to the national trend, Warnock said the rent budget for those considering moving here from outside the town has increased significantly in Bakersfield’s metropolitan area.
However, the increase is not so large.
“Today, the next budget is up 7% quarterly, up 11% year-on-year,” he said.
It puts more pressure on local renters looking for affordable apartments. And because the vacancy rate dropped, the pressure was already high.
“If these new renters get used to the city and save money because of the low cost of living, I think these numbers will eventually make new residents homebuyers,” Thurston said.
“This will further increase demand for the existing single-family home market and the new construction industry,” he said.
Reporter Stephen Mayer can be reached at 661-395-7353. Follow him on Facebook and Twitter: @semayerTBC.
Renters may be feeling the heat as ‘out-of-town’ renters arrive with slightly fatter wallets | News Source link Renters may be feeling the heat as ‘out-of-town’ renters arrive with slightly fatter wallets | News