The average asking rent for an apartment in San Francisco ticked up to a record high of $3,524 per month in the second quarter of 2015, up 2 percent over the past three months and 9.1 percent higher versus the same time last year, but the year-over-year increase, which was 13 percent in the first quarter of 2015, has been slowing and the vacancy rate has ticked up to 4.9 percent, its highest level since 2012, as 1,800 new units were completed in the first half of the year.
The average asking rent in San Francisco has increased 58 percent since 2009. And with the development pipeline flowing and rental rate growth having exceeded income growth for over five years, DTZ maintains “a slowdown is inevitable” but still can’t decide if rents will simply flatten or go down.
At the same time, the average asking rent for an apartment in the East Bay has increased to a record $2,049 a month, up 5 percent over the past three months and 13.5 percent higher, year-over-year. The average rent for an apartment in Alameda County is now $2,200 per month, up 14.1 percent since the second quarter of 2014.
Asking rents for apartments in the East Bay have increased 26 percent over the past two years, higher than anywhere else in the Bay Area. And the vacancy rate for apartments in Alameda County currently measures 3.2 percent, up 0.1 percent from the first quarter of the year with 400 new units delivered in the first quarter of 2015 (versus a total of 900 in all of 2014).
The current average asking rent in San Mateo County is $2,775 per month, up 12.3 percent year-over-year. And the current average asking rent in Santa Clara is $2,584 per month, up 11.3 percent year-over-year.