California has become a major source of real estate revenue in recent years, but a growing number of real-estate agents are seeing their clients pay more than they did before.
A new survey of realtors across the state showed that buyers pay significantly more for property in areas where rents have increased, such as the Bay Area, than they do in areas with lower vacancy rates.
And that trend could be having a significant impact on prices in some of the priciest neighborhoods in the state, including Brentwood, which is just west of downtown, and the Mission District, where median rents are up by over $20,000 per year.
The San Francisco Chronicle recently surveyed about 300 realtresses and found that median rent in the Mission has risen from $3,400 to $4,400 per month.
The median rent for a detached home in Brentwood is $2,400.
And for the Mission, median rents have gone up by $3.50 to $3.,800.
While those numbers are staggering, they are actually somewhat less than the amount of money renters are paying in San Francisco, according to data compiled by realtor.com.
The Chronicle reported that the average rent for new housing in Brento has increased by about $2.50 since 2011, to $1,300 a month.
For a condo, the average increase was $1.75.
In Brentwood alone, the median rental rent has increased more than four times as much as the median household income.
The Chronicle also reported that median income for Brentwood renters has increased from $54,700 in 2011 to $64,200 in 2014, an increase of more than $6,000.
And, as the Chronicle reported, the Mission and the Brentwood neighborhoods have become “particularly hot spots for rising rents,” which may have prompted agents to increase rents, as well.
Realtor.co, a real estate website, reported that Brentwood’s median rent increased by $4.25 per month between 2011 and 2014.
For Brentwood realtor Paul Hickey, the increase is more than offset by the fact that his business is able to get a larger commission, as he is able the more people who use his services.
“We’re seeing an increase in people wanting to use Brentwood properties and renting out homes to them,” Hickey told the Chronicle.
“In Brento, people are moving in to rent out homes because they’re looking for places to live.
But now that Brento is getting a lot more people coming in, the people are coming in to buy properties and rent them out.”
The Chronicle also noted that Brentwoods median income has increased nearly 30 percent from 2011 to 2014, which would have been about $12,000 if not for a 10 percent increase in property taxes.
But that increase, along with the increase in rents, are contributing to the increase of the median income in Brenton.
For a typical Brentwood home, the buyer would pay $1 million in property tax, while the seller would pay about $500,000 in taxes, according the Chronicle report.
The buyer would also pay about 30 percent of the mortgage interest, which has helped to keep Brentwood in the black.
But Hickey says Brentwood prices are not the only reason for a strong local rental market.
The market is saturated, he said, and even though rents are going up, prices are staying the same.
“There are people who are renting in Brent, but the demand for them is so high that they’re not really getting enough housing to live in,” Hicker said.
“We’re not getting the demand that we were expecting.”