Wednesday, July 6, 2022

San Francisco is the only city in the country with more remote office rents than before the pandemic

That’s whySan Franciscoin the new crownEpidemicHousing vacancy rates climbed at the start of the outbreak, and so far, the rebound of the apartment rental market in the city is still lagging behind other cities in the country.rentIt also has a declining trend.

According to apartment rental website ApartmentList, San Francisco is the only city in the country where apartment rents are now lower than before the pandemic. South Bay isn’t far behind, and the city of San Jose has seen the second-worst rental growth in the nation since the outbreak began.

“Over the past two years, the Bay Area’s economy and rental market has been unlike any other major cities across the country, particularly the South,” ApartmentList Senior Fellow Rob Warnock is quoted as saying by the San Francisco Chronicle. The population centers of the Sun Belt have seen an influx of tenants during the pandemic, resulting in reduced vacancies and rising rents in these cities. ,

According to this reporter, because the San Francisco area is one of the most intensive areas for remote working in the country, offices were empty during the pandemic. Until now, many private small enterprises have not asked employees to return to the office, and even large companies only require employees to return to the office. 10% of the total number of employees returned to the office. Some companies only require employees to come to the office one to two days a week. As a result, the rate of return of tenants to the city is relatively slow, which is naturally detrimental to rent collection.

The current challenges facing the San Francisco apartment rental market are not just because office workers have not returned to the city, but also because of telecommuting and moving out of San Francisco or moving back to live with their parents. Addison Chu, who lives in rent in the Buono Mountain community in downtown San Francisco, has been sharing a two-bedroom apartment with his roommate since before the pandemic. The roommate let go of the lease due to long-term telecommuting. Now he can only afford the expenses alone, and he hasn’t paid for it in a short time. Find new roommates to share with.

Researcher Warnock expects rents in San Francisco to lag behind other big cities in the coming months without a flood of new demand.

According to Apartment Listing, the current vacancy rate for apartments in San Francisco increased from 5.3% in March 2020 to 9% in October 2020. On the other hand, the average rent for a one-bedroom apartment fell 15% to $1,662 in December 2020 from $1,966 in March 2020. By 2021, the vacancy rate will gradually recover, with the vacancy rate falling to the current 5%. But rents have gradually improved, with the median rent for a one-bedroom apartment at $1,916 last month, still about 3 percent below the level at the start of the pandemic.

According to Apartment Listing, the two cities to see rent increases nationwide are Tampa, Florida, and Las Vegas. The vacancy rate in the city of Tampa fell to 2.7 percent in August 2021, from 6.8 percent at the start of the pandemic; And between March 2020 and May 2022, single-bedroom apartment rents increased by nearly 40 percent. Vacancy rates in Las Vegas also fell from 6.6% in March 2020 to 2.5% in August 2021, and single-bedroom apartment rents increased by 34% during the pandemic.

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