Apartment Rent & Demand in San Francisco
Covid-19 has caused many changes in big cities like San Francisco. Some good changes, like less traffic, adaptation to technology which supports WFH (work from home) resulting in greater flexibility and so on. One less predicted consequence, is a reduction in demand for apartment housing in San Francisco.
Since the outbreak, the tech sector has eliminated over 25,000 jobs in San Francisco which means less demand for high-price housing. This is due to the fact that tech employees no longer need to live/work in the city. Residential rents have dropped nearly 7% in San Francisco and in conversations with local property management, it’s not just the loss of work but a desire for more space and greater social distancing.
Tenants are trading in their hip urban living spaces for less expensive markets where they can afford a place of their own. They’re moving out of their small, walk-to-work apartments usually shared with multiple housemates for a freestanding, suburban home. We see this trend continuing as the adaptation of technology is allowing people to WFH or where ever their heart desires.