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California is one of the most popular states in the United States, attracting people worldwide. As of July 1, 2024, the state’s population was over 39 million. This huge and diverse audience includes about 10.6 million immigrants, about 27.3% of the California population. Many of them come to the state in search of work and new opportunities and are, therefore, forced to look for housing.
Unfortunately, buying remains an unattainable goal for most state residents because residential real estate prices exceed $750,000. The cost of rent is also not so rosy: On average, state residents are forced to pay about $2,795. To find a profitable option, it is important to understand the features of the rental market in different state regions.
In this article, you will learn how the cost of apartment rent varies depending on the city and region in California. We will also tell you what to pay attention to when looking for housing.
California rental prices are based on several factors:
The location of an apartment is a key factor in determining the rental price. The closer the property is to the city center or popular areas, the more expensive it becomes.
John, who moved to California for work from Wisconsin, shares: “When I got a promotion, I had to move to San Francisco quickly, where the company’s headquarters are located. I was shocked by the rental prices—a one-bedroom apartment cost me $3,000. I had to take out a personal loan from Tremplo County in Wisconsin beforehand, while I was still a state resident. Of course, if I had lived in Fresno or Bakersfield, the rent would have been half the price. But I had to work in the office, and commuting from these cities to San Francisco would have been long and expensive.”
In Los Angeles, rent for a one-bedroom apartment in central areas can also reach $2500–3000 per month. However, rental prices can be lower in the suburbs, such as Santa Clara or Long Beach, around $1800–2200.
New apartments, with good repair and modern amenities such as a pool, gym, and parking, are more expensive. For example, in Los Angeles, one-bedroom apartments in new apartment complexes rent for $3,000-$3,500.
Older apartments will be cheaper, especially in older buildings without additional amenities or needing repairs. Here, rent can range from $2,000 to $2,500 for a similar area.
Rent is more expensive in larger cities with high wages. The median household income in San Francisco is about $140,000 per year, which allows most people to pay higher rent and keeps rates high.
Rents will be significantly lower in quieter, less developed areas like Fresno, where the median income is about $61,000. For such cities, $1,200-$1,500 for an apartment is a common price.
San Francisco and Los Angeles have laws that regulate rents. In these cities, a landlord cannot simply raise the rent. For example, rent can only increase by 1.7% per year in San Francisco. This helps tenants maintain stability and not worry about sudden price hikes.
However, other cities, such as Sacramento or Oakland, do not have such restrictions. This means landlords can raise rents without much restriction, making rents more susceptible to change.
Rental prices in California cities do not remain constant all year round. Demand for housing increases in the summer and at the beginning of the school year, and rents could go up at these times, especially around major universities or resort cities.
In some parts of California, the rental market fluctuates depending on the time of year. Prices might rise during the summer, as most people start looking for housing. Conversely, during winter, demand lessens, and prices may drop slightly.
The rent of an apartment will be higher if it’s close to important transportation arteries, such as subway or bus stations. In San Francisco or LA, rent near subways or stations can be $500-$1,000 more expensive than in remote areas.
Walking distance to shops, cafes, parks, and schools adds value. If you choose an area with good infrastructure, this will also be reflected in the rent price. Rent will be higher in areas like Santa Monica or Palo Alto because life is more convenient and comfortable.
Renting a home in different parts of the state can be a significant expense. If you are struggling to cope with the initial costs of moving in or paying a deposit, personal loans can help. And below, you can see the estimated prices for real estate in different parts of California:
This region has a high concentration of tech companies, universities, and cultural centers, also reflected in housing prices:
This region has more affordable rent prices, but demand has increased recently:
These cities have a diverse rental market, from luxury apartments to more affordable suburban options:
The price depends greatly on how close it is to major centers in suburbs like Santa Monica, Costa Mesa, Chico, or Santa Barbara. Depending on the area’s popularity and infrastructure, the price can range from $1,500 to $3,000.
For example, in Santa Barbara, rent can be much higher due to the scenic views and high demand from students and tourists. In contrast, Chico has significantly cheaper rent, ranging from $1,000 to $1,500 for a one-bedroom apartment.
Looking for a place to live in California but don’t want to overpay? It’s possible if you approach the process strategically. Here are some specific and helpful tips to help you find affordable housing options:
First, decide how much money you will pay for California apartment rent. The cost of living in California apartments shouldn’t exceed 30% of your income. Also, consider other expenses, such as utilities, transportation, and insurance.
Also, if work or study allows, it is worth looking for housing in the suburbs or less popular areas. This will help you save money.
California is a popular place for renters, so good apartments go fast. Make sure you have:
Use dedicated housing search platforms. The best ones are:
The greatest demand for rental housing occurs in the summer, when students and seasonal workers seek housing. However, try looking for an apartment in the winter—during this period, California apartment costs may be reduced, and landlords may offer bonuses.
Popular areas like San Francisco or Santa Monica are expensive. However, nearby cities may be much more affordable:
If you’re alone, renting an apartment may be very expensive. The best thing you can do to share some of the costs is to get a roommate. Instead of paying $2,500 for a one-bedroom apartment, you might pay $1,250 for a room in an apartment that you share. Sites like Roommates.com and SpareRoom are great options to find roommates.
The rent listed in the ad is not always the final rate. Sometimes, you can negotiate a discount with the landlord, especially if you are willing to pay several months in advance or sign a long-term contract.
For those struggling financially, California has assistance programs:
The California apartment market is complex, but understandable if you approach it correctly. Research local conditions, compare offers in different areas, and consider key cost factors. Set a clear budget, clarify contract details, and know your rights. Attention and preparation will help you find a home that meets your expectations and capabilities.
