Calculated Risk: San Francisco Rents “On a tear”

Is this what recovery looks like? If San Francisco is any indicator… perhaps so:

While rents in other parts of the country are rising around the pace of inflation, at 2.7%, the average rental price in San Francisco shot up by 15.8% from a year ago. Landlords are seeing the demand and acting accordingly, looking to mark up rents significantly when they can.

Worth your morning perusal.  Consider this though — if millions of Americans have shot credit scores and can’t afford mortgages, expensive rents are the new normal.  After all, as a landlord, why rent for the price of your mortgage when you can make an extra 20% on the deal?  Renters in a spot pretty much have no choice but to pay…

At least the good news is that we’re under a full-swing recovery.  The question is going to be how strong that recovery really is.

This entry was posted in Economics. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *