Rents Rise in Castro Valley, San Lorenzo Despite Weak Economy

Rents in Castro Valley and San Lorenzo are hitting all time highs, matching a trend that prevails around the Bay Area, according to a research firm in San Francisco.

And this price rise could continue according to Nick Grotjahn with RealFacts, which collects information on complexes with 50 or more apartments.

"If the double digit rent growth continues in San Francisco, the Peninsula and South Bay, I suspect we'll see a migration to the East Bay as renters will be willing to commute further in attempt to find more affordable housing," he told Patch.

A complete list of findings for both communities is contained on the attached PDFs. Selected examples show the following monthly rents:

1. a studio in Castro Valley now averages $908 per month, up 5 percent in the last 12 months;
2. two-bedroom, two-bath apartments in Castro Valley rose 6.8 percent during the same period and now average $1,417;
3. three-bedroom townhouses are the best deal in San Lorenzo, holding constant at $1,650 over the past year. 

The sample in Castro Valley is drawn from 10 rental complexes. The San Lorenzo sample includes just four large apartment complexes so the results are less reliable.

Why are rents rising?

A Mercury News article on the phenomenon attributes it to a combination of an improving job market and the fact that some would-be home owners are unable to buy or hold onto homes.

But given that rental properties are a market the best answer for why landlords are raising rents may simply be that they can.

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