Apartments vacancies from 4.5%-7% in San Joaquin, Stanislaus, Merced

By J.N. SBRANTI
jnsbranti@modbee.com

last updated: July 18, 2008 09:25:58 AM

Record numbers of Northern San Joaquin Valley families may be losing their homes to foreclosure, but they apparently are not moving into the region's apartments.

Statistics from RealFacts, an apartment research company, found the region's rental rates flat and occupancy down in Stanislaus and Merced counties.

Average Stanislaus County rent during April, May and June was $814, up 1 percent from spring 2007. But in central Modesto, rents fell this spring compared with last.

Occupancy rates dropped throughout Stanislaus: More than 6 percent of the county's apartments were empty this spring.

Merced County had even more vacancies: 7.5 percent of all apartments. Its average rents were among the lowest in the state at $711 per month. That's less than half the state average and less than one-third of San Francisco's average.

San Joaquin County apartments are doing a little better, with average rents at $887 and vacancy rates at about 4 percent.

The region has the highest foreclosure rates in America, and some had speculated that displaced homeowners would tighten the rental market, said Caroline Latham, RealFacts' chief executive officer.

"Some analysts have suggested that a high rate of home foreclosures may lead to increased demand for rentals and also increased rent growth," said Latham, noting that it hasn't happened.

"Those foreclosures are a sign of a weak economy, which extends to apartment rentals," Latham said of the Northern San Joaquin Valley. She said many of those who lost homes to foreclosure began renting homes or condos instead of apartments.

Latham said many former valley homeowners have become Bay Area renters, particularly because gas prices have made commuting too expensive.

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