San Francisco Rent Report For July 2017
By DANIEL BORNSTEIN, ESQ.
Rent trends are religiously tracked by a range of analysts and as the Bay Area’s foremast practitioners in solving landlord-tenant disputes, the attorneys at Bornstein Law are heavy consumers of the market news. In this article we posted not long ago, we observed that rent prices were on an upward trajectory.
Factor this into the discussion: Rental site Abodo’s midyear rent report rounded up trends in apartment prices for the first half of 2017 and their consensus? San Francisco rents tailed off ever so slightly (down 1.2 percent). The same report shows the same trend for San Jose and asserts a 0.5 decrease in Oakland rents.
San Francisco remains the costliest market in the country, with one-bedroom flats typically renting for $3,240. The most expensive San Francisco neighborhoods to rent apartments are Financial District, Bernal Heights, and South Of Market.
The cheapest San Francisco neighborhoods to rent apartments are Outer Sunset, North Beach, and Twin Peaks. Get some interesting contrast by neighborhood here.
At Bornstein Law, despite evidence that Bay Area rents are softening, we maintain that over the long term, upwards pressure on prices will continue, simply because of supply-and-demand forces. This is not a game of fantasy football and we have no way to predict the month-to-month fluctuations in percentage points, but we can say that the Bay Area's housing shortage has no immediate fix without addressing more systemic issues.
An estimated 2,762 San Francisco homes are projected to be built in 2017, with nearly three times as much new rental stock as homes for sale planned. But that increased inventory just isn’t keeping pace with demand. At least 10,00 new residents will call San Francisco their home each year, according to the city Planning Department.
The city has attempted to clear the way by approving nearly 40,000 additional homes for 2018 and beyond, but this won’t be much of a relief at first – more than three quarters of these projects are in large, multi-stage developments like Treasure Island and Hunters Point and the shovels aren’t even in the ground yet.
Developers are scrambling to reap the rewards of high demand and low supply, but new housing construction continues to lag population pressure and so we don’t see rents going south anytime soon. This also means that rent control measures will remain a contentious political topic in San Francisco and neighboring communities.
We have chronicled many spirited battles been tenant advocates and Bay Area property owners, and this saga seemingly won’t be resolved in the intermediate future. Given the hostile environment and militancy of tenant rights groups, it’s more imperative than ever to call upon the seasoned landlord-tenant lawyers of Bornstein Law.
As the founding attorney of Bornstein Law, Broker of Record for Bay Property Group and expert witness, Daniel Bornstein is a foremost and well-respected expert in landlord-tenant disputes and other property management issues with over 23 years of experience in handling real estate and civil litigation related disputes in and throughout the Bay Area. More than a litigator, Daniel manages rental properties, assists in completing real estate transactions and is well known for his educational seminars. He is always eager to answer questions and engage with Bay Area landlords, property owners and real estate professionals. Email him today.
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