California Renters Plan to Stay Put Longer

Categories: California Business NewsCalifornia News

Residents appreciate the charm of California neighborhoods as renters commit for longer stays.

News Summary

Recent reports indicate that California renters are committing to longer stays, with a median of 33 months compared to the national average of 28 months. The low vacancy rate of 5.1% complicates the search for new accommodations, making many renters choose to renew their leases. Despite low renewal rates and sluggish rental construction, the demand for housing remains high as residents value stability in the challenging rental market. Key markets in California, like Orange County and Silicon Valley, rank among the hardest to rent, reflecting the overall tight housing situation.

California Renters Settling in for the Long Haul

It’s no secret that California is a dreamy place to live, but with the twists and turns of the rental market, it looks like many renters are planning to stay put a bit longer. Latest reports from early 2025 reveal that renters in the Golden State are sticking around for an impressive median stay of 33 months, which is a noticeable 18% more time than the national average of 28 months. Wow, talk about commitment!

What’s Keeping Renters in Their Homes?

The housing market in California is as tight as a drum! With only 5.1% vacancy across the state, it’s the case that finding a new apartment is no walk in the park. This is significantly lower than the national average of 6.7% for vacant apartments. For those looking to find a cozy new spot, it might mean a more laborious search process, especially in areas that have recently experienced disasters, such as the wildfires that forced many residents to relocate.

Hardest Places to Rent: The List Is Out

Throughout California, five key markets have made it onto the list of the 25 hardest places to rent in the Nation. Here’s how they stack up:

Orange County at No. 14
Silicon Valley at No. 16
Eastern Los Angeles County at No. 17
San Diego at No. 22
Central Valley at No. 24

The average vacant unit in California manages to pull in around 10 showings during its search for a new tenant, a bit more than the national average of seven. So, if you’re looking to fill a space, be ready for a parade of interested parties!

Spotlight on Lease Renewals

lease renewal rates in California aren’t exactly remarkable, as only 51% of renters decide to renew their leases. This is notably less than the 63% seen across the rest of the country. But where it differs, it really gets interesting! For instance, renters in Eastern Los Angeles County enjoy the longest average stay of 40 months and have a compelling 51% renewal rate, making it a favorable market for many. On the flip side, Western L.A. County has the shortest average tenancy at just 30 months with only 42% opting to stay for another term. North L.A. County/Ventura County experience an average stay of 36 months, with a slightly higher renewal rate of 54%. Meanwhile, San Francisco Peninsula/North Bay sharers hang on for an average of 35 months but with only 48% renewing their leases. And of course, who can forget Orange County and its 35-month average, boasting a more promising 61% renewal rate?

New Rentals and Construction Rates Lagging

75 new rentals per 10,000 existing units across the country. Silicon Valley stands out a bit in this regard, exceeding the national average with 93 new units per 10,000. Other regions, like the Inland Empire and East Bay, are churning out 63 and 62 new rentals respectively, but overall, there’s room for improvement across the state.