San Francisco rent prices hit new records, holding above the $4,000 mark for the first time

SAN FRANCISCO - When it comes to real estate, San Francisco has been known to hit its share of unprecedented highs. A new report has now found that The City by the Bay has marked another milestone, surpassing the $4,000 mark for the median rent price for a one-bedroom. And the city leads the nation in annual growth for rent.

The figures were released in a national rent report by San Francisco-based online rental marketplace Zumper. 

The report found that the median for a one-bedroom in San Francisco last month climbed to a record $4,060. For a two-bedroom, it was $5,700.

Largest annual rent growth

By the numbers:

That’s an astounding increase of about 22% from the year before, the highest jump in the nation. 

"No other major market in the report comes close," Zumper said in its report. 

By comparison, nationally, the median rent only grew 0.4% from a year ago to $1,526 for a one-bedroom and fell marginally to $1,905 for a two-bedroom.

SF at the top

San Francisco ranked at the top among major U.S. cities for most expensive rents when it came to two-bedroom units. 

For one-bedroom rentals, it’s behind New York City, which held the number one spot at $4,660. 

Zumper researchers said that one-and two-bedroom rents in San Francisco are the most expensive they’ve seen since the site began tracking the city's data more than a decade ago. 

"San Francisco continues breaking its own records," the report said.

Dig deeper:

A spokesperson told KTVU that the city's median rent for a one-bedroom first crossed the $4,000 mark in May. 

But last month was the first time it stayed above that threshold, according to Crystal Chen, Zumper real estate and housing market expert. 

Figures shared with KTVU showed that five years ago, in June 2021, the median rent for a one-bedroom was $2,790. It was $3,690 for a two-bedroom.

The next three years, prices slightly increased, stayed the same or even dropped, until last year, when the median for both one-bedroom and two-bedroom rentals saw double-digit spikes, 12.5% and 16.5%, respectively. 

AI driven demand

Big picture view:

If recent figures are any indication, the increases may keep going given the landscape shaped by the region’s prominence in the artificial intelligence sector.

"The surge in rents has only intensified since spring," researchers said. "Aggressive AI hiring continues to refill the city."

SEE ALSO: East Bay home with an outdoor-to-indoor pool hits the market for first time in almost 60 years

This has been reflected in rising office space occupancy. Figures show AI companies account for many of the millions of square feet of office space being leased in the city, according to Zumper researchers. 

They went on to point out that return-to-office edicts have also had a big impact on the residential rental market.   

"Return-to-office policies have pulled high earners back into the city center and the construction pipeline is nearly empty," Zumper's report noted. 

Other Bay Area cities affected 

The AI boom has also spilled over into other parts of the Bay Area.

In Oakland, one-bedroom rent was up more than 6% to $2,070. The median for a two-bedroom was up slightly, about 2.5%, to $2,600.

The median price for a one-bedroom in San Jose increased by roughly the same percentage to $2,760 in June. The median for a two-bedroom saw a jump of almost 4% to $3,510.  

Zumper said, like San Francisco, both cities were "pulled along by the same AI-driven demand." 

Though the report noted that there were different factors at play that were affecting each of those rental markets.

"Oakland is still absorbing recent supply that’s giving East Bay renters options," researchers said. "San Jose remains a steadier, already-expensive market where demand is firm but less frenzied than in the city proper."

Researchers stressed that in San Francisco the biggest issue had to do with supply, pointing to figures that showed the vacancy rate for the city’s residential rental units is less than 4%.

"The result is a textbook squeeze: surging demand meeting almost no new supply," the site said. "San Francisco’s near-empty pipeline is what lets its rents run the way the others can’t.

Median rent prices 

Ranking                               1 bedroom       Y/Y%         2 bedrooms          Y/Y%
1. New York                           $4,660             4.00%         $5,620                     4.30% 

2. San Francisco                   $4,060             21.90%         $5,700                  22.60%

3. Boston                               $2,950             3.50%         $3,600                     2.00%

4. Jersey City, NJ                   $2,920             6.60%          $3,000                   -1.00%

5. San Jose                           $2,760             2.60%          $3,510                     3.80%

6. Miami                                $2,610           -3.30%          $3,470                   -1.70%

7. Arlington, VA                    $2,450            0.80%          $3,310                    -1.80%

8. Urban Honolulu, HI         $2,360            7.30%          $3,100                      5.10%

9. Washington, D.C.             $2,300           0.00%           $3,000                    -6.30%

10. San Diego                      $2,220          -3.50%          $3,000                      -2.90%

11. Santa Ana, CA                $2,210          -0.50%          $2,800                      3.30%

12. Chicago                         $2,200          10.00%          $2,600                      4.00%

12. Los Angeles                   $2,200           -4.30%          $2,970                    -7.20%

14, Anaheim, CA                  $2,080             2.50%          $2,680                  -0.70%

15. Oakland                         $2,070            6.20%          $2,600                    2.40%
 

(July 2026, Source: Zumper)