SAN FRANCISCO (KRON) — Home sales aren’t the only thing affected by mortgage rates.
Rental prices are rising nationally and demand for rental units are at their lowest levels since 2009, but in San Francisco the numbers have dropped. Cities in other parts of the country have overtaken San Francisco when it comes to high rent costs.
Last summer, the high rises of New York City took the top spot from San Francisco for most expensive rent prices. This month, San Francisco dropped to third place with Boston coming in at second place, according to the rental website, Zumper.
Tom Temprano moved to San Francisco in 2004 and says the one-bedroom median price of $3,020 a month is still no easy payment. “I’m a terrible cook and I now have to learn to cook for myself because I can’t really with as much as I’m paying for rent afford to go out to eat and do a whole lot,” said Temprano.
There’s also a supply shortage of apartments nationally according to Crystal Chen with Zumper.
The company’s national rent report in October reflected the competition happening between renters. “We ran the same question of how many applications did you submit before you signed the lease and the most popular answer last year was one, and this year the most popular answer was five or more,” said Chen.
Apartment List also measures rent prices month-to-month, using a combination of census data as well as their own data. Senior Research Associate at Apartment List, Rob Warnock, explained where San Francisco stands nationally.
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“A lot of other parts of the country are now in some cases 10 to 30 percent more expensive today than they were in 2020 and San Francisco where that actually isn’t the case,” said Warnock.
Warnock said high rent prices and high mortgage rates discourages everyone from making expensive life choices. “Home ownership isn’t even a dream, it’s a fantasy because of how unaffordable it is,” said Temprano.
One silver lining, the experts say, is that rental prices drop in the winter when people shift their spending to holidays and travel. So, if you’re looking for a deal, you have the next few months to do so.