June 18, 2020
New research shows the multifamily sector in key U.S. markets is starting to reflect the challenges of a COVID-19 induced economic slowdown. Zumper’s National Rent Report for June 2020 showed all of the top 10 priciest cities either had flat or declining rents.
In fact, Zumper reports San Francisco rents are down more than 9% year-over-year, which is the largest decline ever and the lowest price point it’s been in more than three years. Additionally, RealPage reports San Francisco apartment vacancies rose to 6.2% in May, an increase from 3.9% only three months ago. The decline followed stay-home orders as renters decided not to renew leases.
Zumper researchers wrote, “The most expensive city in the nation experienced the largest year-over-year drop since we started creating these reports in 2015. San Francisco one-bedroom rent is down 9.2% since this time last year to $3,360, which is also the lowest price point it’s been since March 2017.”
The next most expensive markets, New York City, Boston, and San Jose, all experienced negative year-over-year changes for their respective one-bedroom rents as well.
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