America’s Rental Housing Crisis

America’s Rental Housing Crisis: Insights from the Joint Center for Housing Studies of Harvard University

Today, I had the opportunity to participate in a Zoom presentation led by the Joint Center for Housing Studies of Harvard University, titled “Deteriorating Affordability: An Update on America’s Rental Housing 2024.” The discussion highlighted the growing challenges in rental affordability across the nation—an issue that is no longer confined to high-cost states like California but has now become a nationwide crisis.

America’s Rental Housing Crisis: Insights from the Joint Center for Housing Studies of Harvard University

Key Takeaways from the Presentation

🔹 Rental Affordability at an All-Time Low

The United States has reached a new peak in rent unaffordability. While California renters and landlords have long faced some of the highest housing costs in the nation, the affordability crisis has now spread across all 50 states. Today, nearly 22 million households—approximately half of all renters—are cost-burdened, meaning they spend 30% to 50% of their income on rent.

🔹 Who is Most Affected?

The youngest renters (under 25) and the oldest renters (over 65) experience the highest cost burdens. More than half of Black and Hispanic renters are rent-burdened. Even among fully employed households, rental costs continue to outpace earnings

🔹 A Nationwide Struggle—From Urban Centers to Rural Communities

Rent affordability is no longer just a challenge in major metropolitan areas. Over one-third of renters in every state are now cost-burdened, with particularly severe impacts in:

  • The West, where high housing costs persist.
  • The South, where lower housing costs are offset by equally low wages.
  • Rural areas, where 40% of renters are now struggling to afford rent.

🔹 Rising Costs and Declining Availability

The increasing cost of rent is not just a result of inflation but also of declining rental stock. Several factors have contributed to this trend:

  • The demolition of older, more affordable units to make way for new developments.
  • Landlords exiting the market due to heightened regulatory pressures.
  • Rising construction costs, including both labor and materials, leading developers to prioritize luxury housing with higher profit margins over affordable units.

The median percentage of income spent on rent has now reached 31%, and alongside rising costs for food, energy, and healthcare, many renters are struggling to cover essential living expenses. A staggering 17% of renters reported falling behind on rent at some point in 2024, highlighting the precarious financial situation many households face.

Where is the Rental Market Headed?

📉 Rents Are Stabilizing—But Demand Still Outpaces Supply
After the sharp increases following the pandemic, asking rents have plateaued in many areas. However, demand for rental housing continues to exceed supply. Despite over 600,000 multifamily units being constructed last year, the need for housing remains critical—partially fueled by the increasing difficulty of purchasing a home in today’s market.

⚖️ Legislative and Policy Efforts Are Increasing
State and local governments are stepping up efforts to address the crisis, recognizing that rental affordability is no longer just a market trend but a policy imperative. However, economic uncertainty looms large, with experts hesitant to make definitive predictions about the future of the housing market.

A Call to Action: The Need for Smart Solutions

In 2024, California legislators declared housing a human right—a powerful statement, but one that lacked concrete plans for how to ensure access to affordable housing for all. To truly address this crisis, policymakers must prioritize increasing housing supply rather than relying on restrictive measures such as rent control, which often exacerbates shortages.

The path forward requires streamlining development processes, reducing regulatory barriers, and investing in sustainable, affordable housing solutions. Instead of discouraging new construction, we must create policies that incentivize environmentally responsible development while expanding rental options for all income levels.

The affordability crisis is a challenge we cannot afford to ignore. It’s time for bold action to ensure that safe, stable housing remains within reach for all Americans.

Jan Leasure, Managing Broker
www.MontereyRentals.com 
831-402-1765

Vacation Rental Trends

Beachouse

One of the key vacation rental trends that vacation rental owners should be aware of in 2025 is the increased demand for unique stays. Unique stays often command higher nightly rates and attract more bookings.

Travelers are seeking one-of-a-kind experiences, such as remote cabins, tiny homes, treehouses, and luxury glamping.  These types of homes are unique just by their very nature.  But what if you have a vacation rental home that can best be described as “average?”  There are things you can do to turn an average house into a unique vacation rental. This can significantly increase bookings and nightly rates.

Here are some ways to make a property stand out:

  • Give your rental a distinct personality by creating a theme or concept
  • Coastal Retreat (nautical decor, surfboards, beach gear)
  • Mid-Century Modern (vintage furniture, retro appliances)
  • Boho Escape (earthy tones, hanging plants, rattan furniture)
  • Hollywood Glam (bold colors, velvet furniture, gold accents)
  • Name the property accordingly (e.g., “The Boho Hideaway”“The Seaside Retreat”) for branding.
  • Have a custom logo or signage (e.g., a wooden entrance sign)

For lots more revenue-generating ideas, reach out to Jan@MontereyRentals.com!

 

Jan Leasure, Managing Broker
www.MontereyRentals.com 
816 Wave Street
Monterey, CA 93940
831-402-1765

Top 5 Things to Know About Renting Property on the Monterey Peninsula

Renting property on the beautiful Monterey Peninsula is an exciting opportunity for both tenants and property owners. With its breathtaking coastline, charming communities, and strong rental demand, the region offers plenty of benefits.

Renting property on the beautiful Monterey Peninsula is an exciting opportunity for both tenants and property owners. With its breathtaking coastline, charming communities, and strong rental demand, the region offers plenty of benefits. However, navigating the rental market here requires an understanding of local trends, regulations, and best practices. Whether you’re a homeowner looking to rent out your property or a tenant searching for the perfect place to call home, here are the top five things you should know:

1. Demand Is High, but So Is Competition

The Monterey Peninsula is a highly desirable place to live, thanks to its stunning scenery, temperate climate, and proximity to world-class attractions. As a result, demand for rentals remains strong year-round. However, competition can be intense, especially for well-maintained properties in prime locations like Pacific Grove, Carmel, and Pebble Beach. Renters should be prepared to act quickly when they find a suitable home, while landlords should focus on presenting their properties in the best possible condition to attract quality tenants.

2. Local Rental Regulations Vary by City

Each city within the Monterey Peninsula—Monterey, Pacific Grove, Carmel-by-the-Sea, and others—has its own set of rental laws and regulations. Some areas have strict short-term rental restrictions, while others require permits or specific lease terms. For example, Pacific Grove has a limited number of short-term rental licenses, and Carmel-by-the-Sea prohibits most short-term vacation rentals altogether. If you’re a property owner, understanding these local laws is crucial to avoiding fines and ensuring compliance.

3. Seasonal Rental Trends Impact Pricing and Availability

The rental market on the Monterey Peninsula experiences seasonal fluctuations, particularly in coastal areas where tourism is a major factor. During peak travel months (spring and summer), short-term rental rates can be higher, while long-term leases tend to be more stable year-round. Homeowners looking to maximize rental income should consider these trends when deciding whether to offer short-term or long-term leases. Tenants, on the other hand, may find better deals in the off-season when demand is lower.

4. Property Maintenance and Amenities Matter

Due to the coastal climate, rental properties in the Monterey Peninsula require regular maintenance. Salt air, moisture, and seasonal weather changes can contribute to wear and tear, making upkeep essential for landlords. Properties with modern upgrades, energy-efficient features, and well-maintained outdoor spaces tend to attract higher-quality tenants. Renters often prioritize amenities such as in-unit laundry, updated appliances, and private outdoor areas—features that can set a rental apart from the competition.

5. A Property Management Team Can Make a Big Difference

Whether you’re a homeowner renting out your property or a tenant looking for a reliable landlord, working with a professional property management company can simplify the process. A knowledgeable management team handles everything from tenant screening and lease agreements to maintenance and compliance with local laws. At Monterey Bay Property Management, we specialize in helping property owners maximize their rental investment while ensuring tenants have a seamless rental experience.

Final Thoughts

The Monterey Peninsula offers a unique and dynamic rental market, full of opportunities for both landlords and tenants. By understanding local regulations, market trends, and best practices for property maintenance, you can make informed decisions that benefit your rental experience. If you’re looking to rent out your property or find a rental home in the area, Monterey Bay Property Management is here to help.

Need expert advice on renting in Monterey? Contact us today at www.MontereyRentals.com to learn more!

Jan Leasure, Managing Broker
www.MontereyRentals.com 
816 Wave Street
Monterey, CA 93940
831-402-1765

Monterey Beach Front Ocean Harbor House Vacation Rental

Ocean Harbor 312 - Monterey - Vacation Rental Special $79/night

Monterey Bay Property Management
DRE #01263576 #01936813

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Ocean Harbor 427

Renovated beachfront 🏖️ 3 bedrooms 2 baths – 1600 sf. Monterey condo sleeps 6

🌊 Enjoy the coastal vibes, private patios, and abundance of amenities at Ocean Harbor House.

☀️Steps to the beach & coastal recreation trail. Walk to downtown and the wharfs.

Book now for an unforgettable beach escape! 

 

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BOOK TODAY!

Ocean Harbor 329 – Monterey Vacation Rental

Ocean Harbor 312 - Monterey - Vacation Rental Special $79/night

Monterey Bay Property Management
DRE #01263576 #01936813

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Ocean Harbor 329

Ocean Harbor freshly furnished 1 bedroom 1 bath – 830 sf. condo sleeps 3 & has peeks of the Monterey bay.

Steps to the beach & coastal recreation trail.

Walk to downtown and the wharfs.

BOOK TODAY!

VACATION RENTAL ⭐ SEA BLINK CARMEL

SeaBlink Carmel

 ⭐ Introducing ⭐
SEA BLINK 

Just a “blink” away from the beach, this executive 3,200 sf. home is located in Carmel’s coveted Golden Rectangle. The tri-level design sleeps 8 has four bedrooms, 3.5 baths, three workspaces, multiple outdoor patios, glorious gardens and an evergreen lawn.

Monterey Bay Property Management
DRE #01263576 #01936813

BOOK TODAY!

FOREST MIST A MONTEREY VACATION RENTAL

Little Green House - Monterey Vacation Rental

 ⭐ Introducing ⭐
Forest Mist – Monterey

Bordered by a seasonal stream, this 3 bedroom, 3 bath – 1920 sf. Monterey woodland sanctuary sleeps 6 and offers abundant peace and privacy on nearly one-quarter acre.

Easy access to Highway One and 68, it’s close to everything on the Monterey Peninsula..

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BOOK TODAY!

Little Green House – Monterey Vacation Rental

Little Green House - Monterey Vacation Rental

 ⭐ Introducing ⭐
Little Green House a Monterey Vacation Rental

Walk To Town Cottage! If walls could talk … this sweet 1 Bedroom 1 Bath plus 2 office spaces 670 sf cottage that sleeps 2 would have stories to tell.

This Monterey neighborhood was the inspiration for John Steinbeck’s “Tortilla Flat,” a novel that Steinbeck dedicated to the home’s original owner, a friend, poet, and local teacher.

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BOOK TODAY!

Do you need property management in Monterey County?

Contact Managing Broker:
Jan@MontereyRentals.com – (831) 402-1765

Monterey Bay Property Management was established in 1986 and is the “go-to” company for premier property management services.

A large percentage of our current customers have come through the referrals of previous and current satisfied clients.

Monterey Bay Property Management specializes in the property management of single-family homes, condos, and apartment buildings in Monterey County.

#Monterey #MontereyBay #propertymanagement