For the 26th straight month, September 2025 saw rental rates decline on 0-2 bedroom properties. The drop was 2.1% or $36.
The median rent in the fifty largest metro areas was $1,703, down $56 (3.2%) from it’s high in August 2022 but still $241 (16.5%) higher than the pre-pandemic level.
All unit sizes saw drops in rental rates, with one-bedroom prices down 2.3%.
As the economy shifts, many Bay Area communities – particularly those near tech centers – are seeing rents dropping. San Francisco (11.8 percent), Mountain View (15.1 percent), Menlo Park (13.5 percent), Cupertino (15.7 percent), and San Jose (8 percent) all saw significant decreases on one-bedroom rentals.
On the other hand, communities a bit farther out saw modest increases – Oakland (4.5 percent), Walnut Creek (1.3 percent), and Concord (2.3 percent).
As more employees are able to work remotely and commuting is no longer a hugely significant factor, analysts expect more migration to the suburbs.