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SF rents on the rise
Rents in San Francisco are up more than 10% over this time last year.
SAN FRANCISCO - San Francisco rent prices are on the rise again, confirming what many residents have already noticed.
Prices climb after temporary dip
Dig deeper:
According to a new report from Apartment List, rents in the city have increased by 11.5% compared to this time last year, with a 1.2% hike in just the past month. The average cost for a two-bedroom rental now exceeds $3,600 per month.
Newcomers feel the pinch
Local perspective:
Recent arrivals to San Francisco said what they've seen backs up those high prices.
"We found that everything was close to the same price, so we just kinda kept looking until we found something nice and then went there," said Brian Hughes. "You can get something a lot worse for the same amount, so that was interesting."
The steepest rent hikes are occurring in the urban core, particularly in neighborhoods like Mission Bay and China Basin, where new construction is not subject to rent control.
"We can't stay here," said Amelia Meyer. "We'll have to leave eventually because every year they just keep going up."
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Factors driving the surge
San Francisco realtor Kevin Ho attributes the rising rents to several factors, including increased post-pandemic demand, long-term renters holding onto rent-controlled units, and an influx of new workers drawn to the burgeoning AI industry.
"You have a city that's coming out of the pandemic. You have reduced inventory because people can't build it fast enough, and you have rent control," said Ho. "It's no wonder why rents have really increased."
The escalating rental costs are pushing some renters to consider buying.
"People are making that calculation," said Ho. "It's time to buy it, especially because condominiums have been softer recently.:
Resident Albert d’Host agrees.
"Buying has actually been a better situation, except for interest rates, of course, but prices have been better for buying," he said.
San Francisco stands out amid state and national trends
Big picture view:
While San Francisco rents soar, the report indicates a 1.1% increase across California and a nearly 1% decrease nationwide.
For those seeking more affordable options, Austin, Texas, experienced the largest year-over-year drop, with a 6.5% decrease in rent prices compared to last year.