New York City now more expensive than San Francisco for rentals
Call it a comeback – to New York, at least.
This month, the Big Apple overtook defending champion San Francisco as the most expensive city to rent, according to a report from apartment listing site Zumper.
A one-bedroom apartment in New York City averaged $ 2,810 in August; similar excavations in the Bay Area cost $ 2,800. It’s a minor upheaval – of course – but one that presents a major change.
“It was unthinkable just two years ago,” said Jeff Andrews, author of the report.
San Francisco had retained the highest rents in the country since Zumper began collecting data in 2014. As the city attracted tech companies, then workers with wages to spend in posh living spaces throughout. from 2010 to 2010, rents increased to meet demand.
In early 2019, the median one-bedroom rent in San Francisco was $ 800 higher than in New York.
Then the pandemic saw this decades-long rush turn the tide. Rents have also fallen. A punch that hit New York almost as hard as the Bay Area.
This year, these rental trajectories have diverged. Vaccine deployments have brought students, families and young professionals back in hopes of bringing a supposedly hot vax summer slice to New York City. Rents have increased with demand and peaked at less than $ 40 from their March 2020 average in August, Zumper found.
In San Francisco, Andrews said, the density of tech jobs with work-from-home setups still firmly in place has kept tenants out and apartment prices accordingly low.
At $ 2,800 per month, a one-bedroom apartment is still down 20% from its pre-pandemic average – $ 3,500.
That doesn’t mean San Francisco is dead. A report released last week by the RENTCafé ad site found the city’s rental market to be the second busiest in the country. But the people behind the demand are younger and have less money to spend.
An influx of Gen Z renters has swooped down on rentals with depressed prices. The hike has yet to raise rents significantly.
Andrews sees San Francisco remain relatively affordable for the foreseeable future, as the spread of the Delta variant continues to delay office reopens originally slated for fall.
“For San Francisco tech companies that plan to have an office, these workers can continue to live out of town,” Andrews said. “Which will probably cap the rent increase.”
New York rents continue to rise. A StreetEasy report released Friday said July rents in Flatiron, the East Village, the Financial District and Nolita in Manhattan – as well as downtown Brooklyn, Bed-Stuy and Greenpoint – each exceeded their March averages.
The rise is expected to continue, StreetEasy economist Nancy Wu said in the report, albeit at a slower pace.
Miller Samuel CEO Jonathan Miller sees this slowdown as a side effect of Delta’s rise to power.
“I think Covid has had an impact, but it’s more of a slowing or easing of some of the intensity,” he said. “The market continues to tighten. “
He attributes part of the rise to federal stimulus dollars paid to cities, creating jobs and the reopening of colleges in the fall. He also noted that Bay Area rental prices were also on the rise again.
Rents in San Francisco rose more than 2 percentage points from July to August, according to Zumper data, from $ 2,720 in July to $ 2,800 in August.
This means that New York’s title as the most expensive city could be short-lived.