In the first quarter of 2024, San Francisco saw a continued rise in apartment rents, marking the longest streak of rent increases in two years. By the end of March, average rents were 1.7% higher than in November 2023. If this growth persists, the city could experience a 5% annual increase in rents. This upward trend suggests rents might soon return to their peak levels from 2019, pre-pandemic.
Despite being one of the most expensive cities for renters in the U.S., the lack of rent increases during significant inflation has relatively lowered the cost of renting, especially for higher-end properties. The decline in population between 2019 and 2022, mainly due to remote work trends among tech workers, significantly affected the demand for apartments in downtown areas and particularly luxury properties.
There are encouraging signs that San Francisco’s population is rebounding and its previously stagnant office leasing market is beginning to revive. This could lead to a more robust and dynamic rental market in the upcoming quarters.
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Source: CoStar
