Good news for Vallejo, Vacaville renters: Rents dip just a tad

While rents are up in San Francisco, there is still some good news for renters in Vallejo and Vacaville: Rents in these cities are not only stable but have dropped a tad year-over-year, according to local property managers and online data firms.

The average rent in Vallejo is $1,765 a month, down just 0.1 percent, which averages out to $1 less monthly, according to Apartments.com. While higher than Vallejo at $2,055 a month, Vacaville rents dropped 1.5 percent, $31 less per month.

These are some of the Bay Area's most affordable rents, while San Francisco rents have jumped 7.1 percent, to $3,313 a month. As more tech firms adopt artificial intelligence, workers with those skills are moving to San Francisco, driving up rents in the city.

"In Vallejo specifically, rents do tend to sit on the lower end of the Bay Area. A big factor is housing stock. There's a large percentage of older inventory, and unless those units have been significantly updated, they naturally pull the average rent down," said Derrick Karimian, vice president of property management at Krystle Properties, a family-owned Vallejo property management company.

"There's also still a perception gap compared to surrounding markets. Vallejo has improved in a lot of ways over the years, but it doesn't command the same pricing as places like Walnut Creek or San Ramon. That continues to cap how aggressive rents can get, even when vacancy rates are lower," Karimian said.

Also, according to Apartments.com, "Being in the northeastern Bay Area makes daily commutes to job centers challenging," another factor bringing down rents.

Vallejo has a high residential occupancy rate of approximately 96 percent with roughly 43,539 units occupied out of 45,523 total housing units, according to the 2020 U.S. Census. A healthy occupancy rate for long-term residential rentals is generally 90 percent to 95 percent.

"Occupancy is solid," Karimian agreed, adding that demand is steady.

"Many landlords are choosing to keep a good tenant in place rather than push rents and risk vacancy, which contributes to the flat year-over-year numbers," he said.

"On Vacaville, I don't work that market as directly, but generally speaking, it tends to support slightly higher rents. In my experience, that usually ties back to newer housing, strong retail presence, and overall perception as a more suburban, family-oriented market," the property manager said.

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