We recently completed an in-depth study for Business Insider on rents in SF but we wanted to share it with you.
We pulled a year’s worth of data and discovered that the rise in rents is not as wide-spread as people have been led to believe.
Dramatic price increases are only happening in a few neighborhoods
> 20% price increases are in 3 neighborhoods. SOMA, Bernal Heights, and Marina.
> BUT, SF as a whole is only up 2.74%
> Yes, tech had an impact but so did other factors (see below).
> Change is very hyper-local, not as general as people are being led to believe.
Prices are actually dropping in some neighborhoods!
> 10% drop in price in Financial District & Downtown.
> Since America’s Cup ended, prices in many neighborhoods in North SF have stabilized.
> Plenty of SF neighborhoods are still good values.
Multiple factors are causing the changes, but only 1 is being discussed (Tech).
> Tech. Yes, this is driving demand & price for apts but only in specific neighborhoods.
> Luxury apartments. New construction is hitting the market that is expensive.
> Rent Control. 75% of units in SF are protected under rent-control. This is locking up supply and landlords with long-term tenants are hoping to max what they can get from new vacancies.
> Increase of short-term, furnished rentals.
Let us know what you think is driving up rents and if you’re noticing hyperlocal changes like we have discovered.
Seen on Business Insider: http://www.businessinsider.com/san-francisco-rent-map-2014-2
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