Results of Marin long term residential rental market released

Kentfield—July 8, 2020—Foundation Homes Property Management’s continuing study of the long term, single family home (SFH) rental market in Marin County has revealed a reduction in the days-on-market (DOM) measurement, but the firm says it may be a short term occurrence.

Having conducted the study since 2015, Kentfield-based Foundation is well-positioned to characterize the market and to predict changes that may be on the horizon. The April 1/June 30 period is the first studied during state and Marin County regulations related to the COVID-19 pandemic.

“While the first two months of 2020 were fairly strong,” said Christopher Barrow, Foundation’s co-founder/broker, “the rental market began to falter in March and that carried through early May when we began to see both a pickup in the pace of transactions and a steadying of pricing. The reduction in days on market was also a result of reduced inventory, with many tenants opting to renew rather than move.”

Foundation, founded in 2010 by Barrow and his wife, Darcy Alkus-Barrow, said the data is particularly important in Marin because “so much of Marin’s wealth is tied to residential real estate.”

With over $155 million dollars of residential real estate in its management portfolio, Foundation is well-positioned to study and to provide historic and perspectives on the segment.

“County-wide there is a broad variation in housing stock available, he said. “For instance, the pricing range for the county is $1.94 - $3.35 per square foot, depending on town and market segment.”

Also affecting the market has been the statewide moratorium on evictions, rent deferral requirements and the changing regulations regarding the showing of occupied properties to prospective tenants. Additionally, of the 10,000+ single-family residences in Marin that are rental properties, many inadvertently became rent-controlled because independent landlords did not provide tenants with notification required by AB 1482 by the July 1st exemption deadline.

“In the current climate we have an eviction ban, required rent deferrals and now thousands of homes accidentally covered by rent control. It is not simple being a DYI landlord in Marin right now,” he said.

Foundation said that compared to the initial market fallout from the March shelter-in-place (SIP) orders, the bulk of last quarter was one of increased market activity, with the caveat that rental rates continued to be lower than the previous year. Although properties stayed on the market for shorter periods of time (generally 4-6 weeks), demand and rental closing volume are still well below last year.

“Our advice for landlords is if they are considering renting their home, now is the time to do it due to the relatively short days on market,” said Christopher Barrow. “We are anticipating a slow fall/winter as this initial push to change housing due to SIP has a reduced influence on the market.”

“While we are still renting homes, the volume is down between 20 and 36 percent, depending on the areas in Marin. In response, we are working with our clients via weekly webinars and informational videos to update them regulatory and market changes.”

Key Statistics from Q2 2020

• In the luxury segment (over $8000 per month), DOM fell from 51 to 37 for the corresponding quarter in 2019 and price per square foot (PPSF) decreased one percent to $3.35.
• In the broader Marin market (Sausalito to Novato), DOM fell from 54 to 42, while the PPSF decreased 1.66 percent to $2.97 on lower volume of homes rented.
• The average discount (actual price to listed price) as in the 5% to 10% range.

Approximately half of Foundation’s properties are in the luxury segment.

Foundation quarterly examines single family homes (excluding condominiums) primarily from the Central to Southern Marin County market, and drew its data from proprietary internal information, Zillow/Trulia and BAREIS Multiple Listing Service (MLS).

About Foundation Homes Property Management

Foundation Homes Property Management(www.foundationhomes.com) is a full service property management, real estate sales and relocation firm, serving Northern California. Foundation Homes has more than $155 million in residential real estate assets under management. The firm has served over $1 billion worth of rental homes since it was founded in 2010 by the husband and wife team of Christopher Barrow and Darcy Alkus-Barrow. Based in Kentfield with an office in Petaluma, Foundation offers a full suite of real estate services from property management and analysis to lease and sales negotiation. The firm employs web-based technology to support delivery of services by a hands-on team of experienced professionals. The firm’s telephone number is (415) 507-9600.