After a year that saw rents reach new heights in San Francisco, prices have largely stabilized in the city, according to data from real estate listings site Zumper.
While it’s hard to make the argument that the city is becoming more affordable – especially since San Francisco’s rents still remain the highest in the entire country – the statistics do ease some concerns that rental prices are still on a strong upward trajectory.
Out of the 43 neighborhoods identified by the company, 26 of them have either seen no year-over-year rental increases or rental declines. Of the remaining neighborhoods the median year-over-year rental increase was 2.95 percent.
The only neighborhood seeing double-digit percentage rent increases from last year was Lower Pacific Heights, where its median one-bedroom rents of $3,630 is a 10 percent jump from last year.
Next on the list of the highest rental growth neighborhoods is Bayview, followed by the Tenderloin and the Lower Haight, seeing annual increases of 7.45 percent, 6.25 percent and 6.15 percent respectively.
Lower Pacific Heights is also included when it comes to the neighborhoods with the highest absolute rents, joining Pacific Heights, South Beach and Hayes Valley which all have median rents over $3,500.
On the other end of the price spectrum are neighborhoods near the Western and Southern borders in the city. Parkside, Outer Mission and Outer Richmond had the lowest median rents in the city according to Zumper.
Interest in these cheaper neighborhoods have been increasing, while San Francisco’s luxury housing stock downtown have been seeing decreasing demand, in part due to price pressures.
"The demand for the luxury rental market in San Francisco has died down since peak summer 2016, new inventory has become available, and people are looking elsewhere in the Bay Area for more affordable housing are all factors in this rent stagnation," said Zumper's Crystal Chen.
Renters looking for a relative bargain may also want to seek out Cole Valley or the Inner Richmond, as they were the two neighborhoods which saw double digit rate declines from last year and sit on the lower end of the absolute rental price range.
"While the demand will always be there for these neighborhoods, the prices have come down from last year since less people are looking to move right now and it seems a ceiling has been hit," Chen said.
By Kevin Truong