California Has a 4.1% Rental Vacancy Rate, 13th Lowest in the U.S.

The COVID-19 pandemic caused a drastic transformation in how and where people live. Following the initial lockdowns, society re-opened with a strong emphasis on remote work and social distancing, leading to many relocating away from city centers. While some moved to more spacious and affordable Sun Belt states, many others ended up moving to suburban regions within the same metropolitan areas. This sudden shift in migration patterns caused the rental housing market to become overwhelmed with demand, leading to a long-term decline in rental vacancies and an increase in housing prices. This is an important economic indicator because it signals the balance between supply and demand for rental