By Jack Stubbs
California – and the West Coast more generally – remains an attractive destination for renters, with West Coast cities still viewed as primary markets of interest.
RentCafe.com, a nationwide apartment search website that allows renters to easily find apartments and houses for rent throughout the U.S., recently released its June Activity Rental Activity Report, which analyzed some of the main shifts in renters’ preferences across the country.
The research team analyzed RentCafe’s rental listing data across the 150 largest cities by population in the contiguous U.S., and the cities were ranked based on four metrics – availability rate, page views, favorites and saved searches – and their averages, as of June 2023 versus June 2022.
Notably, none of the California cities analyzed in the report – which included San Francisco, San Diego and Sacramento, among others – made the top 30 U.S. cities for rental activity in June, according to RentCafe’s research. However, West Coast cities continue to be desirable for renters looking for a dynamic, active lifestyle.
“What we see on the West Coast, especially in California, was that a lot of the ‘lifestyle markets,’ especially San Diego, ranked pretty high…people like the lifestyle [there], they like to live in those areas,” said Doug Ressler, manager, business intelligence at Yardi Matrix, the parent company of RentCafe. “…When you look at the overall nation, the number one [rental market] was Kansas City. But that is still what would be considered a secondary or tertiary market.”
The more laid-back culture of San Diego, in particular, attracted the highest number of renters among California markets, with a noteworthy 294 percent more San Diego apartments marked as favorites on RentCafe’s website in June 2023 versus June 2022. Additionally, the number of available apartments in San Diego dropped by 17 percent year-over-year, leaving prospective renters with limited options.
San Diego ranked sixth in renter interest across the West Coast, following closely behind Portland, Ore. and Chandler, Ariz.
As has traditionally been the case, cities with dense urban cores, like San Francisco, tend to be expensive, which has had knock-on effects in terms of renter preferences, noted Ressler.
“[The report] is an excellent way to talk about the different types of migration patterns and the opportunities that people are looking for,” he said. “Obviously, urban core centers like San Francisco or New York City are more expensive – people are voting with their pocketbooks to be able to move to an exurb or a fringe area like Fremont or the Anaheim area, or even as far away as Sacramento. A general lower cost of living – whether in Kansas City or Sacramento – is still a big factor in terms of rental activity.”
Sacramento was the second-most sought-after city for renting in California in June, with 188 percent more apartments marked as favorites compared to June 2022, while there were 32 percent more apartment views on RentCafe’s website.
Meanwhile, Fremont and San Jose outpaced San Francisco in rental desirability, securing the fourth and fifth spots in California’s rankings, respectively.
Anaheim – the second largest city in Orange County – ranked third in terms of renters’ interest in the Los Angeles Metropolitan area, which is the second-largest metro area in the United States.
Renters viewed and marked more apartments in Anaheim as favorites compared to June 2022. Meanwhile, Los Angeles proper doubled its tally of “favorited” apartments year-over-year, but with a 19 percent increase in available apartments, prospective residents currently have more options, states the report.
From a broader national perspective, one of the factors that will continue to play a big role in determining renters’ interest is the provision of social amenities and proximity to transportation options.
“People are looking for the social amenities around where they live, whether in cities like Kansas City, San Francisco, San Diego or Sacramento. It’s not just about where you live – you want to have access to the economic diversity of grocery and retail, and if your lifestyle warrants it, then recreation also,” Ressler said.
“Transit-oriented development is key, especially in those areas that maybe weren’t previously considered attractive. We’re also seeing that buildings are being upgraded in terms of the amenity packages, where you might have gym-like amenities at the mixed-use property. People are voting with their pocketbooks, but also in terms of the amenities they’re looking for.”
