Rents Are Rising as Wages Stagnate in Most Markets
Are you searching for a rental property in San Diego or elsewhere in the United States? If so, one important thing that you should know is that in most IT markets like Sorrento Valley, Silicon Valley, Seattle or Austin Texas have higher than normal rents while wages in these locations are stagnating.
What to Expect When Renting in A–Tech Market
In San Jose and other tech markets across the United States, the average rent for an apartment has been going up while wages have stopped increasing.
For example: The average rent in San Jose is now about $3,000 per month while the rent in many nearby communities is averaging about $1,200 per month. That’s a big price difference regardless of the income that you earn, and the sad thing is that the wages that most people are earning have not increased with the average rent in tech communities so most renters will either move farther away from their jobs or leave the area altogether.
Over the last five years, Silicon Valley has become known for not the advent guard technology that’s being created there, the area is also gaining more notoriety for a large number of homeless people who work in the IT community and live in campers, RV’s, cars, vans or other makeshift homes.
Could Rent Control in California Stop the Rent Growth in Tech Communities?
Statewide rent control like what was recently passed in Oregon could help slow down rent growth in California so that wages can catch up with rents, but since the last rent control initiative failed at the ballot box it may be some time before rent control can make it to the ballot box again.
To learn more about this issue, or to speak with us about our San Diego property management services, contact us today at (800) 294-4656 or connect with us online.
