San Francisco Rent Prices Leveling, while Oakland Rent Prices Are Going Up
Rent prices in Oakland posted an increase in the past month, while prices in San Francisco's rental market cooled in November.
A report from The Real Deal stated that home rent prices appear to be leveling in San Francisco's rental market. However, Oakland's rental market saw an increase in prices in November, according to the latest data from rental services start-up firm, Zumper. The growth of Oakland's rent prices in November has turned the city into the fourth most expensive rental market in the nation.
The rental rate of a one-bedroom unit in Oakland has risen to $2,190, which is a 19 percent increase in the past year, according to Zumper's data. The rent price for a two-bedroom unit in the city increased to $2,550, a 13.3 percent jump in the past year. Meanwhile, San Francisco's rent price, which saw its highest rate of $3,670 in October, has cooled to $3,500 in November. This is a 4.6 percent decrease from the previous month.
The Real Deal report also made mention of Zumper's Devin O'Brien's statement, in which he indicated that the rising rental rates in Oakland may signify an upcoming change in San Francisco's market. He stated, "I think there's a certain threshold (percentage of income), where people will refuse to pay and look for alternate options. There are also a decent number of new developments slated to be completed in the next year, which should slow the rate of increase in the city."
Despite Oakland's big jump in rental rates, San Francisco still remained as the most expensive rental market, according to Zumper.
Other real estate markets that posted high rent prices based on Zumper's report include New York City, which landed at the second spot with the average rental price of a onebedroom unit in the city standing at $3,240. Boston came in at third place with one-bedroom units renting at $2,380 in November.
Meanwhile, a report from the San Francisco Times cited that the dip in November rent prices could indicate a slowdown in tenant demand, given that hiring activities of technology companies have also cooled down. The rise in Oakland rent prices is also an indication that many home renters are moving away from expensive markets and into the East Bay area.