SAN FRANCISCO, March 28, 2018 /PRNewswire/ -- San Francisco started the year with an influx of new inventory and modest rent increases, but affordability is still a challenge for the city's renters. Median rent in the city of San Francisco is $4,508, up 1.0 percent from a year ago, according to the inaugural HotPads® Rent Report.[i]
Median rent growth in San Francisco has cooled in recent months and has not exceeded 1 percent since December 2016. According to HotPads data, rent appreciation in San Francisco reached 16.7 percent in February 2015.
San Francisco renters will have almost 40 percent more newly-available rental listings to choose from than a year ago, with the Mission and SoMa reporting inventory increases over 50 percent. [ii] However, while the city overall is seeing an uptick in inventory and a general cool-down of the rental market, renters have not yet seen much relief to their monthly rent payments. San Francisco's median rent hasn't dropped below $4,000 a month since December 2014.
"Even though rent increases in San Francisco have been modest for quite some time now and new units are coming online, the city is still one of the country's least affordable," said Joshua Clark, economist at HotPads. "San Francisco has a lot to offer in terms of job availability and cultural attractions that make it a desirable place to live, but there just isn't enough supply to accommodate that demand. The city has seen substantial new supply come online in recent months, and rents would be even higher if these new apartments had not been built, but renters are still struggling to keep pace with the market."
Median rent for a one-bedroom in San Francisco also increased in the first quarter of 2018, rising 0.3 percent year-over-year to a median of $4,284 per month. However, median rent for a one-bedroom declined slightly in the Mission and SoMa.
Key Findings — San Francisco
Key Findings — Downtown San Francisco
Key Findings — Mission
Key Findings — Hayes Valley
Key Findings — SoMa
HotPads is an efficient rental search platform for urban areas across the United States, with features designed for competitive markets such as map-based search, real-time notifications and detailed information on landlords and property managers that help renters spend less time searching and more time feeling excited about their next home.
Launched in 2005, HotPads is based in San Francisco and is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG).
HotPads is a registered trademark of Zillow, Inc.
[i] The HotPads Rent Report is a quarterly overview of the median rent and change in rental listing inventory within the city of San Francisco, as well as four of its neighborhoods: Downtown, the Mission, Hayes Valley and SoMa. Data are aggregated from rental listings on HotPads dating back to January 2014. The reports are compiled by the HotPads Economic Research team. HotPads tracks data for rental markets throughout the United States, but currently only produces reports for San Francisco, Chicago and Atlanta.
[ii] New listings include all rental listings added to HotPads within the quarter, excluding properties listed for rent more than once in the last 90 days.
SOURCE Hotpads, Inc.