San Francisco has seen a major reset in rental rates through the coronavirus pandemic.
San Francisco has seen a major reset in rental rates through the…
The historic rental drop in San Francisco in recent months has not affected all parts of the city equally.
The company has broken down this data neighborhood by neighborhood, and it shows that while some areas of the city have seen rents plummet by more than 20%, others have seen an increase of up to 16%.
The largest rent decreases were found in neighborhoods within walking distance to San Francisco start-up hubs — SoMa saw a decrease year-over-year of 19%, and the Lower Pac Heights neighborhood saw a whopping 21% dip. Downtown and Financial District rents dropped by 15% and 14% respectively.
This is “due to the proximity to work which is no longer as important a factor in where renters choose to live,” Zumper CEO Anthemos Georgiades told SFGATE.
This time last week I tweeted about the ??11.8% yoy SF rent decline using our @zumper data
It felt like a real tipping point. This was a historic inflection
Some of you asked about how the price drops broke down across neighborhoods. Here you go
— Anthemos Georgiades (@anthemos) July 8, 2020
Meanwhile, rental rates in the farther, less expensive reaches of the city have seen an increase year-on-year, with Outer Richmond prices climbing 11% and rents in the Bayview up 16%.
Other neighborhoods have seen little change — Noe Valley’s prices dropped just 1%, and NoPa and the Castro were both down just 2%.
“This really feels like a historic moment. With rents down 11.8% year on year, this is the first time this generation of renters in San Francisco has seen a shift like this,” Georgiades said.
As for what the future holds, Zumper does not foresee a bounce back in the rental rate any time soon.
“We believe that rents will continue to drop for a while and then plateau. We do not believe we will see any form of immediate recovery to previous highs for a long time,” Georgiades said, “This is without question a reset, driven in part by the recession, in part by an influx of supply, and in part by the future of remote work.”
Andrew Chamings is an editor at SFGATE. Email: Andrew.Chamings@sfgate.com | Twitter: @AndrewChamings