According to real estate analytics company Zumper, the exodus, out of San Francisco has been so great, that the median rent for a one-bedroom apartment collapsed more than 20% in September from a year ago to $2,830. Month over month, September rent for a one-bedroom apartment in the city fell by 7%.
Referring to the plunge in rent prices in San Francisco, Zumper said:
“Not only is this drop among the largest yearly decreases Zumper has ever recorded in our history of tracking rental prices, but it was also the first time the median 1-bed price in San Francisco was priced below $3000. These combined trends show just how drastically the market has changed in the nation’s most expensive city to rent.”
Zumper CEO Anthemos Georgiades, who was quoted by CNBC, said a flood of supply is hitting the market:
“Some renters may be inclined to move to the suburbs to get more space, as the Covid-19 pandemic spurred companies to close offices and allow employees to work from home. Facebook and Google, for example, have told employees they can work remotely at least through next summer,” Georgiades said.
The virus-induced downturn, resulting in the collapse of small businesses citywide, the decimation of low-income households, and high-unemployment, is forcing many folks across the metro area to downsize or move to less expensive areas. He said wildfires and hazardous air conditions were some other reasons for “tipping the balance about their medium-term location choices.”
Social unrest and the rise of violent crime have made many folks uncomfortable about raising a family in the dangerous metro area. Many are moving to rural communities of the Bay Area, from Marin County to Napa wine country and south to Monterey’s Carmel Valley.
Georgiades said it could take years for San Francisco real estate to heal from its pandemic wounds:
“Despite everything our data is showing, there are so many signals that it will recover, however contrarian this point may sound,” he said. “However, I think we’re talking years to fully recover, not months.”