Housing Market Strong In Solano County

Summary
Housing market strong in county
By Matthew Bunk
FAIRFIELD -- Unless job growth in the Bay Area picks up rapidly, apartment availability and rent costs in Solano County should remain stable, said a private firm that tracks multi-family housing trends.

The county's occupancy rate has hovered between 94-95 percent since 2001, when the economy soured and a record number of apartments were built. In the growth years before the recession, shockingly few apartments were available causing occupancy rates to hit 98.3 percent in 2000 and rent costs to balloon.

Ninety-five percent occupancy, or 5 percent vacancy, has been the "golden" number, Cox said, that signals a balanced market. There are 64 apartment complexes, ranging in size from 50 to 560 units, in Solano County, according to RealFacts. Only 3 percent were built in the 1990s, and 6 percent have been built since 2000.
Suisun City had the lowest rent average, $975, with Benicia the highest at $1,138.

Business
April 23, 2004
Housing market strong in county
By Matthew Bunk
FAIRFIELD -- Unless job growth in the Bay Area picks up rapidly, apartment availability and rent costs in Solano County should remain stable, said a private firm that tracks multi-family housing trends.
The county's occupancy rate has hovered between 94-95 percent since 2001, when the economy soured and a record number of apartments were built. In the growth years before the recession, shockingly few apartments were available causing occupancy rates to hit 98.3 percent in 2000 and rent costs to balloon.
Rent averages have been relatively stable since the "dot-bomb era," mostly due to dwindled demand for Bay Area rentals, said Gerald Cox, marketing director for RealFacts, a company that tracks multi-family housing trends for clients in the real estate industry.

"If job growth occurs at a measured pace, the (occupancy) rates are low enough to be able to absorb that," Cox said. "I don't see, for the short term anyway, Solano County getting back to occupancies of 98 percent."
Ninety-five percent occupancy, or 5 percent vacancy, has been the "golden" number, Cox said, that signals a balanced market. Higher rents typically result from vacancies of about 4 percent or less, he said.

"For a long time Solano County wasn't changing much," he said. "But it got overheated in the late 1990s by an amped local economy."
It cost $777 to rent a two-bedroom, two-bathroom apartment in 1997, according to RealFacts. The same apartment type rented for $1,150 in 2001, and increased to $1,206 in 2004, the company said.

The county's across-the-board rent average has been stable for the past year, said RealFacts. As the economy recovers, inflation and interest rates are expected to rise, a deterrent to homebuyers and a boon to landlords, said Cox.
"With the low interest rates, everyone who felt secure in their job bought a home," he said. "It was like, if you can afford it, buy it."

There are 64 apartment complexes, ranging in size from 50 to 560 units, in Solano County, according to RealFacts. Their combined inventory includes 10,155 units.
Sixty percent of the units are in complexes built in the 1980s. Only 3 percent were built in the 1990s, and 6 percent have been built since 2000.

Fairfield and Vallejo each have 20 large apartment complexes, the most in the county. Vacaville has the most total units at 3,220. Suisun City had the lowest rent average, $975, with Benicia the highest at $1,138. Fairfield's average was $1,109, and Vacaville's was $1,059.

Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.