The average rent prices in the city of San Francisco have noticeably dropped during the year of 2020, most likely due to the current pandemic. Many experts have pointed out that the average rent prices for this year in San Francisco alone have reached 2015 record-low levels.
Average Rent Prices of Residential Units Are Dropping in San Francisco This Year
According to SocketSite, there was a noticeable price drop in the average rental prices of most rental properties in the city of San Francisco. That was more prevalent during the Coronavirus pandemic, wherein a 23% drop was recorded for the average rent price of a one-bedroom apartment. That percentage means that now the common average rent price is around $2,700. That drop also affects most studio type units, as experts are expecting their prices to be dragged down even more than others.
However, even though there are many price cuts when it comes to rental properties, it seems that there are fewer people choosing to rent in big cities like San Francisco. It can be blamed back on the ongoing pandemic, as many are choosing to stay inside their homes to avoid getting the virus themselves. There are also other reasons as to why the public is not contributing much to the sales and rental process.
Prices Are Still Falling Even if the New Year Is Near Approaching
Even though in other locations the real estate market is starting to recover (and with their prices slowly rising back up to somewhat normal prices), the case in San Francisco is clearly different. According to TheRealDeal, the demand for housing rental properties in the San Francisco real estate market is at an all-time low. That is somewhat worrying many investors and experts alike in regards to the situation of the market.
Even though many rental properties are stilled priced somewhat high (around $2,000 to $3,000 on average), experts say that those prices will even drop further in the upcoming months. The main reason for that is that most people are moving away from major cities to avoid getting infected by the current virus wreaking havoc globally.
The city of San Francisco isn't exempted from this, as many possible renters are moving away and instead choosing other suburban and rural locations instead. That results in lower demand in the real estate market in the said city, particularly in its housing market sector.
According to the experts' findings, the overall drop of average rental prices in the location amounted to 35% total. The most affected type of housing rental property, in this case, is the one-bedroom units, wherein a total of 27% of the average rental price dropped significantly. However, it isn't just San Francisco's market suffering, but other markets in many cities as well.
Many rent prices for studio units have been dropped all-year-round, starting from the month of March 2020, the start of the heavy lockdown period. The market only slowly started to recover in May 2020, when the restrictions were starting to become laxer during that period.
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