San Francisco rent prices have surged 13% since 2024. These neighborhoods are driving the spike
San Francisco housing rentals are increasing
With signs of life returning to San Francisco, the prices of housing rentals are going up.
SAN FRANCISCO - It's no surprise rent in San Francisco is expensive. What may surprise San Francisco residents is just how steep of a price increase rentals have seen in the last year.
New data from Zumper shows rental prices in San Francisco have surged by 13% since July 2024, nearly reaching the pre-pandemic average rate of $3,500.
SAN FRANCISCO, CALIFORNIA - JUNE 02: A pedestrian walks by a "for rent" sign posted in front of an apartment building on June 02, 2021 in San Francisco, California. After San Francisco rental prices plummeted during the pandemic shutdown, prices have
An average one-bedroom apartment in San Francisco costs $3,400 per month, the highest rate since April 2020, the real estate company reports.
Before the COVID-19 pandemic, the average rate for a one-bedroom was $3,500.
For two-bedroom apartments, the rental hike in the last year is even higher at 16.3%, according to Zumper.
SF neighborhoods driving the price surge
Five San Francisco neighborhoods are driving the rental cost increase, according to Zumper.
In Mission Bay, one-bedroom rent prices are up more than 21% since this time last year. Hayes Valley has increased by 13.5%, South of Market by 11.4%, Civic Center by 10.9% and South Beach by 9.3%, according to the real estate company.
San Francisco sees bidding wars among apartment rentals
Prices are climbing, inventory is dropping and competition is at new highs. After years of pandemic "discounts," San Francisco's rental market is seeing bidding wars.
So, why is rent getting so expensive?
Well, it is San Francisco.
But the data highlights several recent factors. Local realtor Ken DeLeon of DeLeon Realty says the AI boom has been bringing new renters in.
"You have a big surge in demand from AI, coupled with return-to-office mandates have really become quite common.," said DeLeon. "And that's driving up rents."
Zumper also cites more interest in urban living.
"Finding housing has become increasingly competitive and some companies are even offering incentives for employees to live near the office to boost in-person productivity," the company said in its latest rent report.
San Francisco saw the biggest year-over-year growth in rental prices – but the city is not the most expensive in the U.S.
New York remains the most expensive rental market, according to Zumper, with one-bedroom rents approaching $4,500 and two-bedrooms over $5,200. Despite the hefty costs in New York, rent prices are a bit more stable with just a 2 to 6% increase in the last year.
A "vibe shift"
All those new residents are hitting the streets--eating, drinking and spending money at events like Downtown First Thursdays, which hosted a party on 2nd Street Thursday night. The event is co-organized by the organizations, Civic Joy Fund and Into the Streets.
Local perspective:
"When we started, we had about 12,000 people attend. We're now regularly bringing in about 25, 26,000. So it's doubled in size," said Civic Joy Fund executive director Manny Yekutiel.
"It's really beautiful to see people coming back and the relief in a lot of the business owners," said Katy Birnbaum, founder and CEO of Into the Streets.
The foot traffic is a sight for sore eyes for Norman Singh, owner of North India Restaurant on 2nd Street.
"It's a very tough last four or five years. Very tough after COVID," said Singh.
But in 2025, he says things have turned a corner.
"It's improving for this year," said Singh. "Some more customers coming in."
Mayor Lurie posted on social media Wednesday, announcing convention and hotel bookings, public transit ridership and ballpark visits are all up.
New business owners like Lupita Romero, who's opening a workout studio downtown, says she's noticed a huge change in recent months.
"We've looked everywhere and we felt like San Francisco's up and coming," said Romero. "We're super excited that we made this decision to come here."
Some people are calling it a vibe shift.
What they're saying:
"We're on the way back," said Ayoshan Goshola.
"Overall, there's just an improvement in business sentiments and psychology. Residents are excited to be in San Francisco again," said DeLeon.
"Just a little bit of getting our mojo back and saying, ‘no, San Francisco is amazing’," said Yekutiel.
What about San Jose?
San Jose moved higher on Zumper's list of the most expensive metro areas to rent in, ranking no. 5 in the U.S. In the last year, a one-bedroom rental in San Jose has increased in price by 5% to an average of $2,740.
Nationally, Zumper says rent costs are remaining flat or declining.
A one-bedroom apartment in the U.S. costs $1,520 on average.
The Source: Zumper's July 2025 rental report and interviews by KTVU reporter John Krinjak