Top five reasons to shudder about San Francisco housing
Taking on San Francisco’s challenging housing market is never considered a pleasant picnic. But lately things have gotten even worse, and renters are urged to proceed with caution as they search for a place to live.
Here are the top five shudder-inducing realities about the current rental housing market in San Francisco.
- Rents are up an average of 15 percent over last year. This isn’t a correction of a depressed rental economy. Rather, it’s an inflation driven by limited supply, high demand, and a strongly competitive environment. The average price for a one bedroom apartment is now hovering around – gasp – $2,611 a month.
- The influx of high paying jobs in San Francisco is helping those who relocate here from elsewhere to find housing. It’s not helping those of us who already live here and aren’t expecting any big salary bumps anytime soon. Rents in non-rent control protected properties are going up because your new neighbors can afford to pay more for their apartment than you can.
- It’s looking just as bad in the East Bay. Retreating over to Oakland or Berkeley to try to escape the San Francisco housing wars was once a feasible solution, but now it doesn’t really work. There are a dozen other people at any decent apartment trying to do the same thing.
- Those darn tourists are stealing our rentals. Use of websites like AirBnB to find hotel alternative housing are eating up any surplus rental stock. Properties or apartment shares that might otherwise be rented to a long term tenant are becoming couch surfing sites, and that eliminates stock in the rental market.
- Things don’t look to change much anytime soon. Though more apartments are hastily being constructed, they will still be highly priced. And with economic recovery chugging right along, that means more job growth and more potential San Francisco residents, all competing for the same available pool of places to live.