Marcus & Millichap

Oakland Multifamily Market Report

Oakland Metro Area, Second Quarter 2017

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Rents Soaring in East Bay as Downtown Oakland Revamp Continues

Employment gains and new households strengthen underlying apartment demand. A booming local economy and the relative affordability of housing compared with other parts of the Bay Area provide the Oakland apartment market with a broad and expanding tenant pool. These factors together with positive demographic trends set the stage for healthy rent growth and low vacancy in 2017. Employer expansions and in-migration along with a vibrant startup scene will drive substantial economic gains this year, with the metro on pace to record job growth of 2.2 percent, a level well above the national rate.

Downtown Oakland revamp in full swing. Quality employment opportunities are attracting young professionals to the metro. These population inflows to the city of Oakland act as a self-reinforcing cycle of investment with new residents triggering commercial development, which in turn makes the city more attractive, thus drawing even more residents. As a result, downtown Oakland has undergone a substantial revitalization with new retail, office and residential construction occurring here in the past few years. Moving forward, though record apartment deliveries will generate a slight uptick in vacancy, market conditions remain tight, leaving the metro on pace to record some of the strongest rent growth in the country this year.

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