Vallejo still country’s hottest real estate market
As reported in East Bay Times, two recent studies show that the Vallejo area is still the nation’s hottest real estate market and that rents are also on the rise.
“The steep rise in Vallejo’s rents is likely a ripple effect caused by the expensive rents in San Francisco,” said Apartment List’s Andrew Woo. “As renters get priced out of San Francisco, Oakland, and Berkeley they are moving to cities that are a little further away and less expensive. Rents are increasing elsewhere in the East Bay as well.”
Apartment List’s most recent monthly report, which tracks rent growth, median prices, and market trends, found Vallejo’s rents rising faster than several other areas.
Rents have significantly increased by 5.1 percent compared to a year ago. On average, renters in Vallejo pay $1,090 for a one-bedroom unit and $1,380 for a two-bedroom, the report shows.
Javier Vivas, economics research manager for realtor.com, says his company’s most recent report shows a similar trend.
“Vallejo has retained first place in the realtor.com hotness rankings for the last four months, benefiting from spillover demand from the Bay Area and other adjacent markets — where the lack of affordable homes for sale continues to push buyers into outlying areas,” he said. “In May, the median list price in Vallejo reached $440,000, less than half the price tag of an equivalent home in San Francisco. This continues to drive interest from priced-out buyers, particularly those looking for starter homes, making Vallejo a very attractive option financially.”
Just like with other California markets, homes in Vallejo are in short supply and when they do go on the market, they get a record number of eyes, with half of homes selling in under 30 days, Vivas said.
“For the first time, one in three homes nationwide are selling in under 30 days,” Vivas said. “The lack of affordable homes for sale remains a critical issue, particularly for a growing number of first-time home buyers and millennials, who are lining up for starter homes but can’t break in.”
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