Historically Bakersfield has been a place that doesn’t have a large vacancy rate, however, in the recent past we have seen it get incredibly low. Some surveys show that the citywide vacancy is hovering around 1.5%. This means that there are not enough places to rent, and in turn, the rents can go up because there is so much demand but not enough supply.
What Is Going On In Bakersfield Real Estate?
A large contribution, in my opinion, to the low vacancy rates in Bakersfield right now, are the lack of new units coming on the market. There are houses being built, but there are not a lot of new rental properties being built. On top of that, we have had a recent influx of Tenants to the area because it is more affordable than most other areas surrounding us. For example, in less than a 2 hour drive you can be in Los Angeles where rents are consistently the brunt of jokes, and people are trying to rent every inch of space and getting the prices they are asking for. Those people are starting to realize that they can work from home and are not stuck to their location and can move to somewhere nicer that they can afford and therefore they are making the move to purchase or rent here in Bakersfield.
What Is Going To Happen When COVID Is Over?
Now that people are here from other areas, does that mean that they will go back to where they came from when COVID is over? My hypothesis is that they will not. Some will of course, but most will not because once people tend to move they tend not to move again for another 8 years, if they purchase a home, and especially if you buy a home, you will be less likely to leave this home to go back to a rental in another city. A lot of people who are introduced to Bakersfield correctly are amazed at the quality of properties, and how far their money will go which is attractive to the large majority of people who do not make a large income.
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Synergy Real Estate & Property Management
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