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… Either that or they’ll be looking at other ways to make renting a property more affordable for them. For most this is an easier task compared to those who have families to accommodate also, it’s becoming a trend that single tenant renters are looking for a cheaper alternative than renting. What’s cheaper than renting right now, you ask? Looking into rental properties available for coliving San Francisco locale could be one option to those that are looking to spend less money each month, especially considering the rising price of rental properties within San Francisco.

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.

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