SPECIAL REPORT: Rental costs continue to rise across the Central Coast

In November of 2015, KION reported on the rising cost of rent across the Central Coast. More than six months later, local experts say the problem isn’t any better. In fact, it may be worse.

Sally Backus of Backus Property Management says we need to do something about creating additional housing. “If you have an increase in population and no increase in housing, it’s a given that it’s going to get more difficult to rent or to buy,” Backus said. “The prices are going to continue to go upwards.”

In Santa Cruz county, a lack of student housing paired with commuting Silicon Valley workers is driving up prices.

Amy Walker of PMI Property Management sees people working for companies like Apple and Netflix turning to Santa Cruz to search for housing, which has inflated rental costs. “It has increased slightly over the past six months, probably by $150.” Walker says a two-bedroom apartment in Santa Cruz will cost about $2,600 on average.

In Monterey County, a similar problem persists.

Six months ago, the average one-bedroom in Salinas was right around $900 per month. Now it will cost about $1,000 to $1,200 dollars.

The price then gets higher, the closer you move to the coast. “Monterey…you can add 20% to that,” Backus said. “There are fewer available rentals and it’s an awful nice place to live, so the rent is going to be higher.”

Walker adds that it’s an investor’s market. “…Our economy is tourism, tourism is not paying $150,000 a year.”

Backus maintains that we need more housing. “We have to do something and it has to be a community wide effort to provide houses for sale, for rent, apartments for rent…to accommodate the needs of a variety of people.”