San Francisco has just surpassed New York City when it comes to the highest rents in the country. This remarkable event caps what has been a spectacular rise in demand for rental properties in the San Francisco area. It’s little wonder that San Francisco property management firms have been busier than ever thanks to this impressive rise in demand and lack of new, large construction projects in the foreseeable future.
This is the first time that San Francisco has passed the Big Apple in terms of having the highest median rent in the US. There have been a number of reasons cited for the considerable rise in rental rates that range from the current tech boom, the relatively slow pace of new construction and the favorable business atmosphere.
All of this creates a very low vacancy rate which has generated the spike in rents for both office and residential properties. Consider that a recent study showed that one and two bedroom apartments in NYC average about $200 to $500 less respectively than those found in San Francisco. However, it must be noted that certain sections of the Big Apple continue to outpace San Fran in terms of rental prices.
The famed Tribeca section of NYC offers one bedroom apartments at an average of $4,250 compared to the $4,000 in the Russian Hill neighborhood. For a two bedroom, the distance between Tribeca and Russian Hill is even larger at $1,900. But the overall average across each city still puts San Francisco in the lead by roughly $200.
Compare this to Los Angeles and their prestigious Downtown Santa Monica area which has a median rent of under $3,000 while the famed Chinatown/Leather District of Boston offers single bedroom apartments for $3,225. These differences point out how each area of the country lags behind San Francisco and NYC in terms of overall rent.
However, when comparing rents in terms of per bedroom, New York City just edges out San Francisco at $2,500 to $2,493, a difference of just $7. Given the recent boom in real estate rental properties, San Fran is expected to catch up and surpass NYC unless something unexpected happens over the next year.
In fact, most real estate forecasters are predicting that rental rates for the city will continue to grow for both residential and office areas. The lack of new construction means that unless unexpectedly strong economic forces intercede, the rents will continue to rise due to the lack of space which will take a long time to slow because new construction projects take years before they are fully ready.
With two locations in the San Francisco and SF Peninsula area, we are the San Francisco property managementfirm that more people go to for their needs. This is one more reason why you should be working with us to ensure that you are getting the top market value for your rents. Please visit our website and let our friendly, courteous staff explain what we can do for you while answering all of your questions.