Apartment rents are on the rise in San Francisco, CA. San Francisco has historically been a city full of renters with only about 1/3 of its residents owning their homes. Real estate agents speculate that the new demographic of renters today is centered around the booming tech industry in the area. These young workers prioritize the location of their apartment above other amenities and are willing to compete for the space and pay top dollar for it.
Deborah Brown works for J. Wavro Associates as a leasing agent and this company specializes in residential leasing and relocation assistance. Deborah says that “it’s a crazy rental market right now; it’s out of control…There is so much more demand out there than there is supply.”
Reports show that vacancy rates continue to drop year after year while rent prices go up. Currently, San Francisco reports a 4.2 percent vacancy rate compared to 5 percent just two years ago.
Hessam Nadji is the managing director at a real estate company called Marcus & Millichap. He explains this shift by commenting that “the housing crash is still fresh, and homes are not being viewed as an attractive investment. Renters like the flexibility and mobility of being an apartment dweller, being close to work, and the benefits of the urban lifestyle.”
How much would you pay for a city apartment in the location of your dreams?