San Francisco rents have seen a massive drop since the beginning of the coronavirus pandemic more than any other major city in the United States.
Analysts have observed the average rent in one San Francisco neighborhood to be down to only $1,600. Some housing experts claim that the city has turned into a renter’s market due to many people moving away from the region.
San Francisco has seen more supply and less demand for rents due to the COVID-19 pandemic. However, despite the massive drop in price, the city still keeps its exclusive title of being the most expensive rental market in the U.S.
Topping New York and Los Angeles at $2,700 per month for a one-bedroom apartment, San Francisco is joined by San Jose and Oakland as the top five most expensive rental areas in the country.
The city has seen the most dramatic price drops during the coronavirus pandemic that rivaled those seen in the last recession. Several neighborhoods have experienced drops of more than 20% compared to the previous year.
In South of Market, an average of about $2,800 per month is expected for a one-bedroom apartment. The closer you get to downtown, the lower the prices are due to the increase in homelessness. The only neighborhood in the city that has an average price below $2,000 is Tenderloin. In Russian Hill and the Marina, the average price is around $2,900 for apartments that are closer to the water.
The city’s highest median price for a one-bedroom apartment can be found in Presidio Heights, hovering at about $3,050 per month. In Visitacion Valley, an average of $1,600 a month is to be expected in the southern part of the city, CBS Local reported.
With the coronavirus pandemic causing people to leave San Francisco, the city has now become an area that is more friendly to renters. Some apartments that have been vacant for a while now could probably net an excellent deal compared to before. Renters could also try haggling for a free first month or other benefits that they would otherwise not get in the area.
Rent experts anticipate the price drops to be near their lowest and could hit slightly lower but with the slow stabilization of the economy, could bounce right back to previous levels. The recovery is also supported by the coronavirus vaccine that is soon to be distributed across the country.
