After rents in San Francisco increased 13.5% in 2014, many wondered how much further prices could appreciate. Of course population influx, tech prosperity, and a lack of new affordable units could drive prices up, but was there a percentage of median income that would signal a peak? A number that many would consider too much to pay, driving them to look east or south for housing?
Though that level clearly wasn’t seen in the beginning of 2015, some can wonder whether we’ve now reached it at the end. San Francisco remains the most expensive rental market in the country with a median of $3,500 for a one bedroom apartment. While rents in the city as a whole were up a net 4.5% in 2015, prices trailed off towards the end of the year. After steadily appreciating to a median of $3,670 for a one bedroom, rents dropped back slightly in November and December (thus far) to reach this level.
All the while, the East Bay remains red hot. Oakland’s median one bedroom increased 19% in the past year to become the 4th most expensive rental market in the US. Though the economy across the Bay is booming, driving over companies like Uber, perhaps prices in San Francisco proper have reached a level where, for many, it makes sense to live out east.
Percent change of one-bedroom median asking rents
The map above depicts how rent prices changed within each neighborhood in 2015. The majority of the city saw a slight appreciation of between 0-5%, on top of already high prices. However, many also saw major jumps. The highest increases included Potrero Hill, Hayes Valley, Lower Haight, Downtown and the Tenderloin – all above 15%.
A few neighborhoods actually dropped in price. Outer Mission/Excelsior was down 1% on the year, Outer Sunset dipped 4%, Western Addition lost 2.4%, and Presidio Heights/Laurel Heights lost 6.3%.
If you’re interested in seeing how these changes compare to the rest of the United States, view our December National Rent Report, which analyzes over 1 million active listings available in the month prior to publication.
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