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What the Heck is Going on with Rents?

Tuesday, November 1, 2016 9:18
% of readers think this story is Fact. Add your two cents. / by Wolf Richter / October 31, 2016

Demand is drying up in the priciest markets.

On the surface, rents, when averaged out across the US, still rose in October, though way slower than during the landlord’s golden days, with one-bedroom median asking rent up 1.5% year-over-year and two-bedroom rent up 2.5%, according to Zumper’s Rent Report.

But beneath the surface, a sea change is underway. Zumper:

Among the top ten rental markets, we saw declines in both of the most expensive markets, San Francisco and New York, a trend that continued from last month, and half of the twenty priciest saw falling rents, including cities like San Diego, and Miami, and Honolulu. The market for two bedroom apartments seems to be slowing down even faster, as prices fell in nearly 60% of rental markets.

All heck is breaking loose in San Francisco…

But not because the economy has tanked in the most ludicrously expensive rental market in the US, which it has not. Enormous supply is flooding the market, thanks to a historic construction boom not only of apartment towers but also of condo towers, whose investor-owned units, now that selling them has become tough, are appearing on the rental market.

Nearly all of the new supply is high end, and it is pressuring the market from the top down.

The median asking rent – half are lower, half are higher – for a one-bedroom apartment fell 7.9% year-over-year to $3,380, according to Zumper, which analyzes rental data from over 1 million active rental listings in multi-family buildings (it does not include single-family houses on the rental market). For a two-bedroom, asking rent fell 6.6% year-over-year to $4,670. The fourth month in a row of year-over-year declines.


The post What the Heck is Going on with Rents? appeared first on Silver For The People.


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  • Bonnie Ember

    When your average rent, for a SFR, is $6000. a month, in S.F., there is going to be an adjustment, on the roller coaster ride.

    Fukishima is in full meltdown. The Orca’s are either having stillborns, or their young do not survive.
    Orca’s are no longer communicating, with each other.
    First the Orca, Then the Fish, Then the humans.

    We have overbuilt for our population, but we can invite the Japanese here, to live.
    Where ever you work on a computer,
    in the Global Economy, should have at least the basics: Fresh Oxygen, Good Food & Water. Good Shelter.

    We live up in the Sierra Foothills, in the Mother Lode of Placerville.
    We are in Swansboro, a hilltop community, with an airfield.

    Plenty of good homes here on land for farms. Prices start in the $300′s.

    Come on up.

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