Prices are down 27% from January 2020, but the rental site indicated that while prices continue to fall, an economic upswing in the spring could bring a rental rebound.
“After an unprecedented year, rents in San Francisco are down nearly 27% since January, more than any other big city in the nation. The price drop is tied closely to a drop in demand, as the city’s vacancy rate more than doubled from March through August,” a spokesperson for ApartmentList told SFGATE. “But in the last quarter of 2020, vacancies flattened and rent declines slowed, possibly signaling that a rebound is on the horizon in 2021. The spring is typically when the rental market heats up, so if the economy improves over the next few months, it’s reasonable to expect that prices in SF will start to tick back up.”
Rental prices in Oakland also continued to fall in December, dipping another 0.8%. The city had a total decline of 13.7% over the past year, with two-bedroom median rent currently at $1,950.
Rent didn’t decline everywhere in the Bay Area in December. Walnut Creek saw prices go up, with a month-over-month increase of 0.6%, in December, though they ended the year down 3.1% overall.
Zumper saw similar findings in their most recent rental report. The median price for a one-bedroom apartment was down another 1.5% in December, with a 24% year-over-year decline. Zumper puts the median rent for a one-bedroom at $2,660 and a two-bedroom at $3,500.
Zumper’s migration data shows that while many Bay Area renters moved in 2020, most weren’t interested in moving very far. The Sacramento-Stockton-Modesto was the most popular destination for Bay Area renters and the top five metros were all in California.
We may continue to hit historic declines in San Francisco, but I’m here to remind you that San Francisco’s median two-bedroom rent of $2,305 is still more than double the national average of $1,090.