Recent reports of a sharp drop in apartment rents in both San Francisco and Oakland shouldn’t catch any plugged-in readers by surprise, as it’s a trend we first noticed forming last year. And as we first reported a couple of months ago, asking rents in the two cities had dropped back to 2014 pricing.
Since then, the weighted average asking rent for an apartment in San Francisco – including one-off rentals as well as units in larger developments – has actually ticked up a percent or two to around $4,150 a month, but remains over 5 percent lower on a year-over-year basis and 7 percent below a peak in the fourth quarter of 2015, based on a comparison of over 2,000 listings and with a bit of seasonality in play.
At the same time, the weighted average asking rent for an apartment in Oakland has continued to drop. And at $2,350 per month, it’s down 15 percent over the past year and peak.
And as such, the premium for renting an apartment in San Francisco versus Oakland, which had been ticking down over the past two years, started ticking back up in 2017.