SANTA CLARA, Calif.,
Nov. 13, 2020 /PRNewswire/ -- Rents
in the nation's tech hubs continued their descent in October,
falling by one-third for a studio apartment in San Francisco year-over-year, according to the
realtor.com® monthly rental report released today.
The report also showed that while the declines have begun to slow
down nationally, renters are seeking both affordability and more
space the longer they work from home.
Nationally, rental growth rates are still far below where they
were pre-COVID, but declines are starting to lessen.
The median studio unit rent in October was $1,316, down 0.8% year-over-year. The median
one-bedroom rent in October was $1,495, up 1.1% year-over-year. The median
two-bedroom rent continued to increase in October. At
$1,869, it was up 2.6%
year-over-year, approaching its pre-COVID annual growth rate of
3.5%.
"The combination of tech companies extending their work from
home policies through mid-2021 or even indefinitely, and the desire
for more space, especially with the weather cooling, is putting
pressure on rents in the most expensive urban metros and tech
hubs," said realtor.com® Chief Economist Danielle Hale®. "Just as we saw with
buyers, many renters appear to be looking to escape their urban
life altogether, while others are looking for more space.
Nationwide, rents for two-bedroom units have begun to bounce back
and if the trend continues, price growth could return to pre-COVID
levels early next year."
San Francisco led the nation in
declines with monthly rents falling 33.3%, 26.3% and 23.4% for
studio, one-bedroom and two-bedrooms units year-over-year,
respectively. Rents for studios and one-bedrooms in nearby
Santa Clara and San Mateo counties also saw double-digit
decreases in October.
Outside of the Bay Area, Manhattan, Boston, Seattle, and Washington, D.C. were among the metros seeing
the largest year-over-year declines. These markets also represent
some of the most expensive cities in the country, giving rents the
most room to fall.
In October, the median studio rent in Manhattan was $2,395, down 20.0% year-over-year, accelerating
from 15.4% a month earlier. One-bedroom rents in Manhattan were $3,250, down 16.7% compared to last year,
and accelerating from a decrease of 11.7% in September. Two-bedroom
rents in Manhattan were
$5,333 in October, down 11.1%
compared to last year, accelerating from a 4.1% decline a month
earlier.
Top 10 markets with largest one-bedroom rent decreases in
October
Rank
|
County
|
Median
Rent
|
YoY Percent
Change
|
1
|
San Francisco,
Calif.
|
$2,800
|
-26.3%
|
2
|
New York,
N.Y.
|
$3,250
|
-16.7%
|
3
|
San Mateo,
Calif.
|
$2,541
|
-13.7%
|
4
|
Suffolk,
Mass.
|
$2,585
|
-13.0%
|
5
|
King,
Wash.
|
$1,777
|
-12.0%
|
6
|
Santa Clara,
Calif.
|
$2,454
|
-11.9%
|
7
|
District of Columbia,
D.C.
|
$2,125
|
-9.6%
|
8
|
Middlesex,
Mass.
|
$2,226
|
-8.8%
|
9
|
Honolulu,
Hawaii
|
$1,700
|
-8.1%
|
10
|
Cook County,
Ill.
|
$1,650
|
-7.4%
|
Top 10 markets with largest two-bedroom rent decreases in
October
Rank
|
County
|
Median
Rent
|
YoY Percent
Change
|
1
|
San Francisco,
Calif.
|
$3,810
|
-23.4%
|
2
|
New York,
N.Y.
|
$5,333
|
-11.1%
|
3
|
Suffolk,
Mass.
|
$3,305
|
-10.7%
|
4
|
Santa Clara,
Calif.
|
$3,001
|
-10.5%
|
5
|
San Mateo,
Calif.
|
$3,350
|
-9.9%
|
6
|
District of Columbia,
D.C.
|
$3,000
|
-7.1%
|
7
|
Erie, N.Y.
|
$1,183
|
-6.9%
|
8
|
Middlesex,
Mass.
|
$2,748
|
-6.5%
|
9
|
Fairfax,
Va.
|
$1,995
|
-5.2%
|
10
|
Dallas,
Texas
|
$1,513
|
-4.8%
|
Methodology: Rental units include apartment
communities as well as private rentals (condos, townhomes,
single-family homes). National rents were calculated by averaging
the medians of the 100 largest counties, except for studios, which
were based on 94 of those counties with at least 20 studio
listings.
About realtor.com®
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visit realtor.com®.
Media contact:
Janice McDill,
janice.mcdill@move.com, 312.307.3134
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SOURCE realtor.com