Housing

Report: Bay Area slips in rental rankings, but maintains popularity

July 31, 2025

The Bay Area’s high cost of living has long been a hurdle for renters and a weakening local economy is adding to the pressure, according to a new report from RentCafe.

As a result, San Francisco and Oakland dropped more than 20 spots in RentCafe's 2025 Best Cities for Renters report, while San Jose and Sunnyvale edged even closer to the bottom, according to the report.

The report notes:

Renter income growth has decelerated across all the Bay Area cities analyzed. In Sunnyvale, the growth rate dropped from 51.8% to 39.3%. Similarly, San Francisco's growth fell from 47.8% to 35%. Meanwhile, in San Jose and Oakland, renter income growth stands between 26% and 27%.
The entire Bay Area has experienced a shift in its job market as well, now registering a negative job growth of up to -0.7%. A notable decline compared to last year’s region's job growth, while moderate, was still positive, ranging from 0.1% to 0.2%.

Despite these, Bay Area is undeniably a magnet for renters thanks to the quality of life, which placed Sunnyvale at #3 nationwide in this category, San Francisco at #4, and San Jose at #21. Oakland is the only one trailing behind in this category, at #138, according to the report.

Renters in San Francisco, San Jose and Sunnyvale have a 50-50 chance to secure an apartment top located near shopping, entertainment, green space or public transit, while in Oakland, these desirable locations are scarce for renters.
Another major difference is the school quality, where Sunnyvale leads with an excellent score (7) by www.greatschools.org, followed by San Francisco (5.8) and San Jose (5.3), while Oakland (3.8) schools are ranked below the national average.
Looking at the day-to-day way of living, the air quality dropped below the score that implies health concerns, and less people are facing long commutes compared to last year.
Beyond the quality of living, the entrepreneurial spirit is on the rise in the area. The number of business applications per 10,000 residents has grown: 1 in 47 people in San Francisco launched a new venture in a year, and 1 and 85 in San Jose and Sunnyvale.
The Bay Area's highly educated population is mostly increasing. Sunnyvale is at 50.7% (up 0.7%), San Francisco: 48.1% (up 0.3%), San Jose: 32.5% (up 0.5%),Oakland: 35.3% (down 0.4%).