Rents in Modesto continue to climb, but not as sharply

Apartment rents continue to rise in Modesto, though not as sharply as in recent years, according to data released Friday by RentCafe, a nationwide apartment search website.

RentCafe reported the average apartment rent in Modesto increased 5.9 percent from June 2017 to June 2018, from $1,092 to $1,156 per month.

This follows annual increases of 7.8 percent, 12.3 percent and 10 percent over the three preceding June-to-June time periods.

Before these steep increases, the average apartment rent in Modesto was $788 a month in December 2013, according to RentCafe.

RentCafe tracks rental prices for complexes with at least 50 apartments in the 250 largest cities in the United States.

But rents continue to rise for other types of rental housing throughout the area, according to Hilary Leffler, vice president of residential management at Modesto-based Liberty Property Management. It manages rental properties from Oakland to La Grange and from Fresno to Sacramento.

Leffler said the rental housing inventory remains tight and the market continues to feel pressure from the Bay Area.

“There are just so many commuters,” she said. “A place like Modesto is very attractive for people who work in the Bay Area.”

She said that several years ago her company could have 80 or more properties from Stockton to Turlock available for rent but now has less than half as many and not all are ready for tenants to move in.

Leffler said that while this is the hottest time of the year for her company, it has never been hotter than now. “We are busier than we’ve every been,” she said.

She did see some potential good news. The sale of new homes in the region is picking up, which she said is a good sign for the economy and could ease demand on rental housing.

This story was originally published July 8, 2018 at 3:07 PM with the headline "Rents in Modesto continue to climb, but not as sharply."