Rents in the country’s most expensive market are falling freely.
The median monthly rate for a San Francisco studio in September was $ 2,285 per month, Bloomberg said, citing data from Realtor.com. That’s 31 percent less than a year ago. In comparison, rents fell by 0.5 percent nationally.
The average rent for one-room units fell by about a quarter year-on-year, while the price of two-room units fell by 21 percent, according to Realtor.com.
Santa Clara and San Mateo, both in the Gulf area, also saw large declines in the studio’s medium rent – 19 percent and 18 percent, respectively.
San Francisco rent drops is one of the largest in the country since the beginning of the coronavirus pandemic. The vacancy rate also increased; in May it was 6.2 percent.
Although this trend has not been confirmed at the national level, in the other very expensive rental market in the country: in Manhattan, studio rent fell by 15 percent to $ 2,495 per month and the vacancy rate recently reach an all-time high 5 percent.
The sharp drop in rents in some markets can be directly attributed to the pandemic, which has led more employees to work remotely. “Tenants are probably heading to more affordable areas where they can get more space at a cheaper price,” said Realtor.com chief economist Danielle Hale.
Some companies have noticed. San Francisco-based Stripe is one of the companies they want reduce salaries employees who move from cities like San Francisco, Seattle and New York, and instead offer a one-time bonus. Facebook and Twitter are reportedly considering similar steps.
[Bloomberg News] – Dennis Lynch