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New month, new @Zumper rent report
This one has big implications
After a couple of months where San Francisco's YoY rent drops hit a plateau, 1BR median rents are down again, and down big in August
14.1% YoY in SF
This one has big implications
After a couple of months where San Francisco's YoY rent drops hit a plateau, 1BR median rents are down again, and down big in August
14.1% YoY in SF
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's kind of unbelievable, given this was at $3,700 not so long ago
We're now down 20% from peak
We're now down 20% from peak
TL;DR on the reasons
Demand
- Historic recession
- Record unemployment
- Remote work for tech workers
Supply
- Fall in lease renewals means flood of listings to market
- Short-term leases converted into Long-term after travel collapsed
Demand- Historic recession
- Record unemployment
- Remote work for tech workers
Supply- 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's staggering how closely SF and NYC have mirrored each other, with a slight lag in NYC
1BR median rents in August:
10.9% YoY in NYC
In fact, it's staggering how closely SF and NYC have mirrored each other, with a slight lag in NYC
1BR median rents in August:
10.9% YoY in NYC
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
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's one potential seismic event ahead
There are still eviction moratoria across the US. When those expire, we'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 '21
There are still eviction moratoria across the US. When those expire, we'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 '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'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/
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/
