Having slipped to just under $3,600 last month, the weighted average asking rent for an apartment in San Francisco has since dropped another 5 percent to $3,425, which is now down 20 percent on a year-over-year basis and 23 percent below a 2015-era peak, driven by a sharp increase in vacancy rates.
As such, the average asking rent for an average apartment in the city, which measures 2.4 bedrooms when counting a studio as having one, is now 16 percent ($675) cheaper than just seven months ago with the average asking rent for a one-bedroom in the city having just dropped to under $2,900 a month (which is down from closer to $3,700 at peak).
At the same time, offers of complimentary rent and cash concessions still haven’t waned, driving effective rents down even more.
And rents in Oakland are now dropping as well, with the average asking rent for a one-bedroom in Oakland having just dropped to under $2,200 a month (versus closer to $2,500 at peak).
All that being said, we’ve seen a pull-back in listing activity for apartments in San Francisco over the past week, a pull-back which could help moderate the rate of decline in local rents – which has been averaging around 3.5 percent per month – if it holds. But if the local labor force continues to drop…
We’ll keep you posted and plugged-in.