Year-Over-Year Rent Price Analysis

The subject of today’s snapshot is for Downtown, Santa Barbara, California. Based on our analysis, Santa Barbara’s year-over-year average rents increased across all bedroom types.

Our standard neighborhood analysis uses a 12-month “LookBack” to establish an average baseline rent. The results from the 12-month LookBack analysis are presented in the tables below for Santa Barbara 1–2 bedroom rents from January 1, 2021 – January 1, 2022:

As the table shows, 1BR units increased by 9% from last year or $171 more, and the 2BR units increased by 9% or $233 more. As demonstrated by the table, year-over-year performance for all selected bedroom types increased in rent prices from last year.

Market Activity: Santa Barbara, California

Are you interested in investing in Santa Barbara? Location is an important factor to consider when finding a profitable market for a rental property. The key characteristics of a good location include a strong economy, a growing labor force, and high rental demand. Below are some quick facts about the Santa Barbara rental market that can help you with your investment analysis and overall decision.
 

• Price-to-Rent Ratio
  • Avg 2BR House Price: $1,328,775 (According to Redfin data)
  • Avg Annual 2BR Rent: $35,472 ($2,956 x 12 months)
    • Price-to-Rent Ratio: 37
• Population Growth:
  • Santa Barbara’s population increased by 5.7% over the last decade from 2010-2020 (According to US Census)
• Major Companies & Institutions:
  • University of California - Santa Barbara, Impact, Mission Linen Supply, Yardi Systems, Mentor Worldwide LLC, QAD, Cottage Health, Sonos, Channel Technologies
• Employment Growth: 1.9% (According to Bureau of Labor Statistics)

About Rentometer

Rentometer is the #1 tool for comparing residential rent rates anywhere in the U.S. To succeed as a real estate investor, you need solid, current market intelligence to help you set the right rent rates in Santa Barbara. Understanding local rents (and the factors that drive them) can help reduce investment risk, increase occupancy and improve your cash flow – and income. With Rentometer, you have local, current rents available right at your fingertips.

This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology.