For major American cities, the only way to go is upward. The thriving culture does not only increase the work force's chances of employment and salary but also its living expenses.
According to Property Wire, "The San Francisco metro has the fastest rental appreciation among the nation's 35 largest markets. Rents there are up 15.2% from last year, but they were growing as fast as 19% annually in June and July."
Surprisingly enough, there has been information that San Francisco has seen a slowing down on its rent increase. What could have been the reason for this unusual rating?
In an article written from Zumper, rent for 1-bedroom units in New York had an increase of 8.9% per year during November. Chicago was not as subtle with the increase of 14.5%.
In the earlier year, rents in downtown Seattle were increasing at an 8.4% rate but this year, on September, rent increases only reached up to 3.9%.
According to SF Chronicle, the slower pace of US home rental price rises could be a sign that apartment costs are proving to be too much for the regular renter's income.
The reason behind this slower pace is the upcoming opening of 11,000 new apartment units. Marc Stiles from Puget Sound Business Journal quotes Billy Pettit, a local developer speaking in a recent real estate conference, "Supply, I think, is definitely having more of an impact and a drag on the market right now more than anything else."
15,000 new units are expected to be available on the market this 2016 in San Francisco while 145,000 new jobs are expected to open up. The slow increase of the prices will surely benefit the workers and make San Francisco a more conducive place for them.
"While demand remains high, (Pettit) said the large number of new units coming to the market is reason to pause, especially since the increase in supply is slowing down rent growth," Stiles writes.
