Having continued to inch down last month, the weighted average asking rent for an apartment in San Francisco appears to have bottomed at around $3,050 a month, down around 25 percent since the pandemic hit and nearly 32 percent below a 2015-era peak.
And with the average asking rent for a studio in the city holding at under $1,900 a month (which is down nearly 35 percent from peak), and the average asking rent for a one-bedroom having dropped to around $2,600 a month (which is down a little over 28 percent from peak), the absorption of vacant rental units in the city has accelerated over the past two weeks, with the net number of units listed for rent in San Francisco, including units in larger buildings as well as one-off rentals, having dropped around 15 percent and extending a key trend we highlighted last month.
That being said, listed inventory levels for apartments in San Francisco are still 50 percent higher than they were at the same time last year and twice as high as they were pre-COVID while the population has shrunk, which is likely to moderate a rebound in rents.
Keep in mind that our analysis of the rental market is based on a subset of over 100,000 listings going back going back to 2004 that we maintain, normalize and index on a monthly basis. And as always, we’ll keep you posted and plugged-in.