Rent prices in the Bay Area are skyrocketing and there’s no sign of slowing down.
In 2014, the average monthly rent in San Jose jumped 12 percent to more than $1,800. And San Francisco was right there — rents rose 11 percent to an average of nearly $1,600. In reality, that won’t get you much more than a small studio. One of the big problems has been that there has been a shortage of rental units in San Francisco for a long time.
While there are new apartments going up, that have opened up in the last year, the units are not cheap. Other units that have opened up don’t seem to be bringing down rental prices in the rest of the city.
The Mosso is one of San Francisco newest apartment communities.
“I know that the apartment is about $3,500 a month,” San Francisco resident Fernanda Saboia said.
Fernanda Saboia moved here from Rio de Janeiro. She says she wouldn’t be able to live in her one-bedroom apartment, if her company wasn’t footing the rental bill for her six-month assignment.
“It is really expensive and I knew that coming in. I knew that I would be moving to one of the most expensive cities in the U.S. But, you know, the tech thing is here, so people can afford it,” Saboia said.
Real estate firm Zillow says rents jumped last year because of the ongoing tech boom and they’re expected to jump again this year. For people who are just getting here, many quickly learn compromise may be necessary.
Relocation consultant Betty Granoff has said to her clients, “‘How about getting a roommate?’ And they’re like, ‘A roommate? I’m 35, 40 years old. I haven’t had a roommate since college.’ Well, this is San Francisco.”
Granoff she says rents right now are the highest they’ve ever been. She is able to place clients, but it’s not easy and it’s always pricey.
We asked her what her biggest concern was for the coming year and Granoff answered,”Rentals being available. Because the rents, I suspect, they’re going to go up still.”
For people who already live here, many are just hoping to hang on to what they’ve got.
“I’m paying about, I think, $1,700 a month for a junior one bedroom. And if I moved in and out, I think the rent would go up $400 bucks,” San Francisco resident Mohan Rajagopealan said.
There are a few new complexes under construction, but it’s not yet clear how they’ll affect the market.