San Francisco rent prices are falling

Demand is down as tech employees find cheaper places to live in a remote work world

National Weekend Edition /
Dec.December 13, 2020 02:00 PM
Prices for studio and one-bedroom apartments in San Francisco are down 35% and 27% respectively. (Unsplash)

Prices for studio and one-bedroom apartments in San Francisco are down 35% and 27% respectively. (Unsplash)

 

San Francisco rent prices may still be too damn high, but they’re falling fast.

The median rent for a studio apartment was down 35 percent to $2,100 in November year-over-year, according to Realtor.com data as cited by Bloommberg. One-bedroom units are down 27 percent over that period, to $2,716.

The drop is significant even from earlier this year. The median rent for a studio in September was $2,285 — $185 more than last month.

Studio rents have been falling on a year-over-year basis since March when the coronavirus pandemic forced lockdowns in San Francisco and many other parts of the country. It took until May for rents to begin falling for one- and two-bedroom units.

Rents are falling in many major cities across the country, but the drop is most pronounced in San Francisco, and it’s notable considering the city’s notoriously high rents.

Realtor.com chief economist Danielle Hale said she expects rents to recover, but that will depend on how quickly people return to their offices.

Tech “companies have been among the most flexible with allowing people to work remotely and a lot of workers are taking advantage of that,” she said.

Office vacancy in the third quarter hit 14.1 percent, nearly three times what it was a year prior and the highest percentage since 2011.

[Bloomberg] — Dennis Lynch


Related Articles

arrow_forward_ios
Hammerson CEO Rita-Rose Gagne and Brookfield's Bruce Flatt. (Hammerson, Brookfield, Getty)
Brookfield’s US malls are struggling. Now it’s buying some in Europe
Brookfield’s US malls are struggling. Now it’s buying some in Europe
(iStock)
Homebuilder sentiment ticks up in April
Homebuilder sentiment ticks up in April
Sao Carlos CFO Fabio Itikawa. (Getty, YouTube via Levante Investimentos)
In pandemic-battered Brazil, 3G Capital founders hunt for real estate deals
In pandemic-battered Brazil, 3G Capital founders hunt for real estate deals
Birmingham and Bournemouth both saw a giant increase in demand. (Getty)
Demand for rentals rises in UK’s largest cities in Q1
Demand for rentals rises in UK’s largest cities in Q1
The announcement makes Google one of several tech companies that will let workers return to the office sooner than later. (iStock, Google)
Google will bring some employees back to offices this month
Google will bring some employees back to offices this month
Tricon CEO Gary Berman and Canada Pension Plan CEO John Graham (Tricon, CPP)
Development duo will pour $400M into Toronto multifamily rentals
Development duo will pour $400M into Toronto multifamily rentals
21% of company execs say they plan to reduce office space. (Getty)
More than 1 in 5 company execs plan to slash office space
More than 1 in 5 company execs plan to slash office space
WeWork CEO Sandeep Mathrani (Mathrani/Wikipemedia, Getty)
WeWork lost $3B in 2020: report
WeWork lost $3B in 2020: report
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...