Axiometrics reports that the average apartment rental rate in the Bay Area declined by about 8.1% from $2,040/month in March to $1,874/month in late May. In San Francisco proper, rates fell an average of 10.6% between March and May and occupancy fell to 94.5%. In San Jose, rental rates fell 9.1% and occupancy dropped to 95.5%. In Oakland rates fell 5.4% and occupancy declined to 95%.

Despite that, San Francisco's average rental asking price still ranks second in the nation at $2,115/month, followed by San Jose at $1,738 and Oakland and the East Bay at $1,314, according to a report by Reis Inc.

In addition, Marcus & Millichap's National Multi Housing Group has completed a national study of apartment market trends. The report says the apartment market will remain strong and favorable as investors look for opportunities despite the economic slowdown.