Average Asking Rent in San Francisco Inches Up, Inflation SlowsMarch 3, 2023
The weighted average asking rent for an apartment in San Francisco inched up less than a percent in February to $3,575 per month, which is 7 percent higher than at the same time last year, driven by an uptick in asking rents for three-plus-bedroom units, but still 13 percent lower than prior to the pandemic and nearly 20 percent below its 2015-era peak of nearly $4,500 a month, with the average apartment in San Francisco measuring around 2.4 bedrooms (when accounting for a studio as having one).
At the same time, the number of apartments listed for rent in San Francisco was effectively unchanged last month, with roughly 15 percent more units listed for rent than prior to the pandemic but 60 percent fewer than at the pandemic’s peak, with the inventory of condos and single-family homes for sale across the city currently up around 10 percent but poised to climb.
Our analysis of the rental market in San Francisco is based on over 170,000 data points going back to 2004 that we maintain, normalize and index on a monthly basis. We’ll keep you posted and plugged-in.
Comments from Plugged-In Readers
Just wait until all of those cushy tech layoff severance packages run out, which will be fast given $3500+ per month rents. We haven’t yet felt the impact from all of those layoffs that started last year given the WARN act.
I predict a 2001-2003 style rent bust starts fairly soon (and this is a good thing long term)
Are there not other jobs to be had though? That’s been my understanding. On a personal level the Twitter and Salesforce layoffs people I know personally are already interviewing.
Same here – most of the people I know who were laid off or voluntarily left Twitter are getting good jobs at other solid companies right now.
Companies that laid off at the end of last year are ramping up with hiring backfills/select new roles. Not at the same pace as 2021/early 2022, but enough to absorb a good portion of high quality candidates who were laid off, based on my admittedly small sample size.
anecdotally, i know 10 people who were laid off at twitter and 4 from saleforce.
8 of the 10 twitter layoffs have new jobs in SF. 1 moved, and 1 travelling
3 out 4 of the SalesForce layoffs have new jobs in SF and 1 interviewing
I dont think the market is “awful”
San Francisco continues to see young renters come to town. It’s an exciting place for those who have not yet started families. San Francisco has always seen this pattern. The young move here and then leave when they start raising families. As a property manager in the Bay Area, I can tell you that the rental market is not seeing a dive in rents, but instead rents are holding very strong.
And based on nearly two decades of data, we can tell you that…”the weighted average asking rent for an apartment in San Francisco [has] inched up…to $3,575 per month, which is 7 percent higher than at the same time last year, driven by an uptick in asking rents for three-plus-bedroom units, but still 13 percent lower than prior to the pandemic and nearly 20 percent below its 2015-era peak of nearly $4,500 a month.”
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