With listing activity having spiked, the weighted average asking rent for an apartment in San Francisco has dropped another hundred dollars ($100), or roughly 3 percent, over the past two weeks and is now down to a little under $3,600 a month, continuing a trend which shouldn’t catch any plugged-in readers by surprise.
While $3,600 a month still isn’t “cheap,” it’s over 10 percent or $500 per month cheaper than just five months ago, 17 percent ($700) cheaper than at the same time last year and nearly 20 percent ($850) cheaper than a 2015-era peak of around $4,450 per month. And the average asking rent for a one-bedroom in the city, versus an average-sized apartment with 2.4 bedrooms when counting a studio as having one, is now back under $3,100 a month, having peaked at closer to $3,700, as well.
At the same time, offers of complimentary rent and cash concessions haven’t waned, driving effective rents down even more. And as we noted last month when listed activity spiked, with over twice as many apartments now being advertised for rent in the city than there were at the same time last year, including one-off rentals as well as units in larger developments, expect even more downward pressure on both asking and effective rents in the near-term.
We’ll keep you posted and plugged-in.