The Bay Area’s economic weakness contributed to the fourth consecutive year of declining rents in the region, although there are signs the downturn is nearly over.

Renting an apartment remained a relative bargain in most Western markets during 2004 as weak tenant demand continued to handcuff landlords.

The average apartment rent either declined or rose by less than 3 percent in 15 of the 20 major metropolitan areas surveyed by RealFacts, a Novato real estate research firm.

Southern California surpassed the Bay Area as the West’s most expensive rental market during the past year, reflecting the divergent fortunes of the state’s biggest job centers.

While the Bay Area has been struggling to recover from a high-tech slump that has dampened the region’s household incomes, the Los Angeles area has been faring much better, largely because the region’s economy draws upon a broader range of businesses.

The average apartment rents in the five-county San Francisco metropolitan area dipped 0.4 percent in 2004 to $1,309 -- the lowest since March 2000 when the figure stood at $1,301, according to RealFacts.

Driven by rapid high-tech growth, average rents in the San Francisco metro market peaked at $1,628 in March 2001. The 20 percent decline in average rents since then has saved tenants more than $3,800 annually.

Average apartment rents in Santa Clara County – Silicon Valley’s nerve center – stood at $1,283 at the end of 2004, down by just 0.1 percent from 2003. Santa Clara County rents peaked at $1,956 in March 2001.