San Francisco, NYC rents continue decline
New York City and San Francisco have dealt with an exodus of residents due to the pandemic
In the U.S. rents increased modestly in August compared with years prior, but in some major metro markets they continued to fall.
According to the latest data from Apartment List, rents across the country rose 0.1% last month – and prices were about 0.3% above where they were during the same period last year.
Researchers noted that typically during this time of the year rent growth is normally at its fastest pace – in fact, from March to August growth has typically ranged from 1.2% to 2.5% over the past six years. That makes this year’s growth the slowest by far.
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And in some major, expensive markets, rents are still declining, both month over month and over a more extended duration.
In San Francisco, apartment prices have declined by 4.7% since March – the largest amount of any major city. The median rent for a two-bedroom apartment as of August, however, was still $2,956. Month over month, rent prices fell 1.5%.
New York City has seen the second-largest decline in rental prices, at 3.9% since the beginning of the pandemic, followed by San Jose, Calif., and Miami – at 2.8% and 2.4%, respectively.
In August alone, rent prices dropped 1.1% in New York City.
“The fact that we’re seeing rents decrease at what is normally the peak season for rental activity is reflective of the financial hardship and shifting preferences being imposed by the pandemic,” researchers wrote.
As previously reported by FOX Business, both New York City and San Francisco have dealt with an exodus of residents due to the pandemic.
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In San Francisco, remote work in the tech industry has given workers more flexibility to live in areas other than the expensive metro. Many major tech companies, like Twitter and Facebook, for example, are at the forefront of extending remote work opportunities.
In New York, a severe coronavirus outbreak in early spring, coupled with remote work opportunities for many workers, has led residents to seek either temporary – or permanent – relocations in nearby suburbs, or in some cases other states altogether.
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Overall, researchers said market softness throughout the U.S. is being driven by public health
Additionally, the widespread economic effects that the pandemic has had on the U.S. labor force and American families have played a role in rental prices.