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New month, new @Zumper rent report
This one has big implications
After a couple of months where San Francisco& #39;s YoY rent drops hit a plateau, 1BR median rents are down again, and down big in August
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⬇️" title="Pfeil nach unten" aria-label="Emoji: Pfeil nach unten"> 14.1% YoY in SF
This one has big implications
After a couple of months where San Francisco& #39;s YoY rent drops hit a plateau, 1BR median rents are down again, and down big in August
Related - whereas our monthly report pegs the median August 1BR rent in SF at $3,040, the latter half of August was softer
And so the median 1BR rental price in SF now starts with a *2*, for the first time since @Zumper launched
$2,963 for a 1BR apartment on Zumper today
And so the median 1BR rental price in SF now starts with a *2*, for the first time since @Zumper launched
$2,963 for a 1BR apartment on Zumper today
That& #39;s kind of unbelievable, given this was at $3,700 not so long ago
We& #39;re now down 20% from peak
We& #39;re now down 20% from peak
TL;DR on the reasons
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔽" title="Nach unten zeigendes Dreieck" aria-label="Emoji: Nach unten zeigendes Dreieck"> Demand
- Historic recession
- Record unemployment
- Remote work for tech workers
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔼" title="Nach oben zeigendes Dreieck" aria-label="Emoji: Nach oben zeigendes Dreieck"> Supply
- Fall in lease renewals means flood of listings to market
- Short-term leases converted into Long-term after travel collapsed
- Historic recession
- Record unemployment
- Remote work for tech workers
- Fall in lease renewals means flood of listings to market
- Short-term leases converted into Long-term after travel collapsed
This is true in New York City as well
In fact, it& #39;s staggering how closely SF and NYC have mirrored each other, with a slight lag in NYC
1BR median rents in August:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⬇️" title="Pfeil nach unten" aria-label="Emoji: Pfeil nach unten"> 10.9% YoY in NYC
In fact, it& #39;s staggering how closely SF and NYC have mirrored each other, with a slight lag in NYC
1BR median rents in August:
What happens next in SF & NY is open to debate
A common narrative on Twitter seems to be:
- Cities will never fully recover
- Work will be default remote
- Silicon Valley is now distributed, not geographically constrained
A common narrative on Twitter seems to be:
- Cities will never fully recover
- Work will be default remote
- Silicon Valley is now distributed, not geographically constrained
. @balajis put this well and I buy parts of this https://twitter.com/balajis/status/1299033696591216641">https://twitter.com/balajis/s...
But I also see trends that will prevent the collapse of the city
- Our job offers in SF have *multiple* local/SF counters again
- Prices drop to reset a market equilibrium; ppl move in to fill that
- Many ppl starting careers want city life; they want offices & daily interaction
- Our job offers in SF have *multiple* local/SF counters again
- Prices drop to reset a market equilibrium; ppl move in to fill that
- Many ppl starting careers want city life; they want offices & daily interaction
Saying that, there& #39;s one potential seismic event ahead
There are still eviction moratoria across the US. When those expire, we& #39;ll test the bottom of the market as new supply comes on
For SF/CA all eyes are on @GavinNewsom & the potential for the moratorium to extend into & #39;21
There are still eviction moratoria across the US. When those expire, we& #39;ll test the bottom of the market as new supply comes on
For SF/CA all eyes are on @GavinNewsom & the potential for the moratorium to extend into & #39;21
We will of course report our data on how quickly the markets adjust downwards once the moratorium lifts
(I suspect *very* quickly)
(I suspect *very* quickly)
Zumper& #39;s marketplace is changing quickly (honestly, daily) to reflect the new rental industry we power
As always you can find our full data here
This is backed by 1 million listings/mo & 15 million renter visits/mo https://www.zumper.com/blog/rental-price-data/">https://www.zumper.com/blog/rent...
As always you can find our full data here
This is backed by 1 million listings/mo & 15 million renter visits/mo https://www.zumper.com/blog/rental-price-data/">https://www.zumper.com/blog/rent...
