SAN FRANCISCO, March 28, 2018 /PRNewswire/ -- San Francisco
started the year with an influx of new inventory and modest rent
increases, but affordability is still a challenge for the city's
renters. Median rent in the city of San
Francisco is $4,508, up 1.0
percent from a year ago, according to the inaugural HotPads® Rent
Report.[i]
Median rent growth in San
Francisco has cooled in recent months and has not exceeded 1
percent since December 2016.
According to HotPads data, rent appreciation in San Francisco reached 16.7 percent in
February 2015.
San Francisco renters will have
almost 40 percent more newly-available rental listings to choose
from than a year ago, with the Mission and SoMa reporting inventory
increases over 50 percent. [ii] However, while the city overall is
seeing an uptick in inventory and a general cool-down of the rental
market, renters have not yet seen much relief to their monthly rent
payments. San Francisco's median
rent hasn't dropped below $4,000 a
month since December 2014.
"Even though rent increases in San
Francisco have been modest for quite some time now and new
units are coming online, the city is still one of the country's
least affordable," said Joshua
Clark, economist at HotPads. "San
Francisco has a lot to offer in terms of job availability
and cultural attractions that make it a desirable place to live,
but there just isn't enough supply to accommodate that demand. The
city has seen substantial new supply come online in recent months,
and rents would be even higher if these new apartments had not been
built, but renters are still struggling to keep pace with the
market."
Median rent for a one-bedroom in San
Francisco also increased in the first quarter of 2018,
rising 0.3 percent year-over-year to a median of $4,284 per month. However, median rent for a
one-bedroom declined slightly in the Mission and SoMa.
Key Findings — San
Francisco
- The median rent in San
Francisco is $4,508, up 1.0
percent from a year ago
- San Francisco's rent
appreciation hit 16.7 percent year-over-year in February 2015 and has been steadily slowing ever
since
- Median rent for a one-bedroom is $4,284, up 0.3 percent year-over-year
- There are 39.6 percent more new listings to choose from in
San Francisco than a year ago,
according to HotPads new inventory data
Key Findings — Downtown San
Francisco
- The median rent in Downtown San
Francisco is $3,759, down 0.9
percent from a year ago.
- Median 1-bedroom rents are $3,015, up 2.7 percent year-over-year.
- Rental inventory in Downtown San
Francisco on HotPads is up 8.8 percent from a year ago.
Key Findings — Mission
- The median rent in the Mission is $4,391, down 0.5 percent from a year ago.
- Median 1-bedroom rents are $3,668, down 2.3 percent from a year ago.
- Rental inventory in the Mission on HotPads is up 71.2 percent
from a year ago.
Key Findings — Hayes Valley
- The median rent in Hayes Valley is $5,285, up 11.4 percent from a year ago.
- Median 1-bedroom rents are $3,620, up 17.5 percent from a year ago.
- Rental inventory in Hayes Valley on HotPads is up 19.6 percent
from a year ago.
Key Findings — SoMa
- The median rent in SoMa is $4,553, down 2.0 percent from a year ago.
- Median 1-bedroom rents are $3,552, down 5.2 percent from a year ago.
- Rental inventory in SoMa on HotPads is up 52.9 percent from a
year ago.
HotPads
HotPads is an efficient rental search platform for urban areas
across the United States, with
features designed for competitive markets such as map-based search,
real-time notifications and detailed information on landlords and
property managers that help renters spend less time searching and
more time feeling excited about their next home.
Launched in 2005, HotPads is based in San Francisco and is owned and operated by
Zillow Group, Inc. (NASDAQ:Z and ZG).
HotPads is a registered trademark of Zillow, Inc.
[i] The HotPads Rent Report is a quarterly overview of the
median rent and change in rental listing inventory within the city
of San Francisco, as well as four
of its neighborhoods: Downtown, the Mission, Hayes Valley and SoMa.
Data are aggregated from rental listings on HotPads dating back to
January 2014. The reports are
compiled by the HotPads Economic Research team. HotPads tracks data
for rental markets throughout the United
States, but currently only produces reports for San Francisco, Chicago and Atlanta.
[ii] New listings include all rental listings added to HotPads
within the quarter, excluding properties listed for rent more than
once in the last 90 days.
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SOURCE Hotpads, Inc.