San Francisco again hit a new record of $3,500 for a one bedroom this May, up 1.2% in the month. The city remains the most expensive market in the nation for rent, further widening the gap between second place, NYC, to $400.
As we discussed in our National Rent Report for June, rent increases in the city are a tale of two sides. While a sizable amount of units are slated to enter the market in 2015, much of the new construction is on the higher end of price. Though this has helped ease the luxury market, with a plateau seen in expensive rentals, low to moderate priced units have remained largely unaffected. Though price growth has slowed compared to last year’s 13.5% increase, rents overall continue to climb given increased demand.
The Bay Area as a whole has seen these trends as well. Three out of the top six most expensive rental markets in the country are now located in the Bay Area, with San Jose ($2,120) fourth, and Oakland ($1,900) sixth. Asking rents in San Jose, for instance, increased 3.9% in the month of May alone.
Looking closer at neighborhoods in San Francisco, the most expensive areas remained in the eastern side of the peninsula, with the Financial District, South Beach, Soma and Mission Bay commanding the highest prices. Other pricey areas included the traditionally expensive Pacific Heights and Russian Hill. The best relative deals remained in the Outer Sunset, Inner Sunset and Presidio Heights/Laurel Heights.
If you’re interested in seeing how SF stacks up to the rest of the United States, view our National Rent Report for June, which analyzes over 1 million active listings available in the prior month.
To keep up to date with rent changes across the country, like or follow us on Facebook or Twitter. In the market for a new place? Search over 1,400 available San Francisco apartments on Zumper.
* Of note, Bayview on our map is cited as $3,210. We decided to report upon this number, as it represents the actual asking rent in the neighborhood due to new luxury housing stock. When normalized for these additions, the median drops to $2,000.
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