San Francisco Rents Drop, Apartment Pricing Holds Steady

For the past several months, we've been highlighting anecdotal evidence that the San Francisco rental market is cooling, with inventory up and demand down. The data are now proving this out. 

Local development blog Socketsite cited a Cushman & Wakefield report which found that San Francisco rents slipped a little less than 1.0% in the second quarter, with the East Bay still rising. Notably, the figures reflect activity in larger buildings (50+ units).

Despite flattening and now declining rents, sale prices for apartment buildings are yet to come off record highs and are well above the historical trend.

Data: CoStar

Pessimism surrounding weakness in technology employment has been offset recently as venture capital firms continue to rake in record amounts of investor capital. All eyes are now on the looming Indian Summer buying season to see how demand holds up in the face of the annual deluge of properties for sale.