Oakland’s average rental rates are now only about $230 behind prices in San Jose. Monthly effective rents in San Jose typically run much further ahead of Oakland prices. Over the past five years, the average difference between these two markets has been close to $470. With the decline in rental rates during the COVID-19 pandemic, however, San Jose’s average effective prices have come down considerably, falling by more than 19% since peaking at $2,972 in March 2020. Meanwhile, Oakland rents have been more stable, coming down by a considerably less 8% since the March peak of $2,417. As a result, Oakland prices were not quite as deep of a bargain over San Jose rents as of January 2021. Across product segments, Class A units still hold the biggest discount, with prices in Oakland coming in $305 less than San Jose’s Class A stock. Class B units are only $177 cheaper in Oakland, while Class C product is now logging a disparity of only $185 between the two markets.
