Interesting news. I've heard that real estate prices haven't budged much and with the stock market remaining relatively strong, I wonder if we will see a corresponding rebound in rent sometime soon.
San Francisco, Silicon Valley rents plunge amid downturn
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Re: San Francisco, Silicon Valley rents plunge amid downturn
#12Can't read due to paywall but I wonder how much of this is due to most Airbnbs presumably going empty.
Here's the last sentence of the article: "In addition a lot of Airbnb listings are being offered as regular apartments now, which could also increase supply and lower rents, Goss said."
"Goss" is Charley Goss of the San Francisco Apartment Association, FYI.
Re: San Francisco, Silicon Valley rents plunge amid downturn
#13Looks like people are really leaving the Bay Area. you don't see 10-15% price drops in a year without corresponding drop in demand.
Also, a drop in money, as in, a lot of people suddenly don't have any. And not just people leaving, but people not moving in.
Re: San Francisco, Silicon Valley rents plunge amid downturn
#14I think the reality will set in soon on this once the CARES bonus UI is removed (and if it is not replaced) and the PPP loans run out. Right now everyone I know in real estate is still convinced it was just a minor blip and love to cite cherry picked stats about how a recovery is already under way.
Coincidently I have been seeing a lot of fully furnished units coming on the market which I assume were former Airbnbs.
Re: San Francisco, Silicon Valley rents plunge amid downturn
#15My landlord in SF offered to lower the rent around 9%.
Re: San Francisco, Silicon Valley rents plunge amid downturn
#16Time to buy the dip
rent_price != property_price
No, but in a more or less normal market, they aren't completely disconnected. The rent-price ratio will not usually vary a whole lot (one of the markers of the Great Bubble was that the ratio was completely out of whack). Since units of housing are somewhat functionally the same whether you rent or buy, price changes in one part of the market will eventually catch up to the other.
Re: San Francisco, Silicon Valley rents plunge amid downturn
#17Looks like people are really leaving the Bay Area. you don't see 10-15% price drops in a year without corresponding drop in demand.
Yeah. I was driving through Mountain View & Palo Alto yesterday and basically every apartment complex has a "For lease!" sign on it, many with generous move-in specials. The steady stream of moving vans leaving the area hasn't abated, either - it's the end of month, and I've heard at least 3 of them being loaded up in my neighborhood in the last day.
I suspect rents are going to fall further, too, because there are still a lot of vacancies. They're down maybe $200 on a $2000/mo 1BR, which is a lot in percentage terms but is still an awfully high rent when about 20% of units are vacant.
Re: San Francisco, Silicon Valley rents plunge amid downturn
#18Looks like people are really leaving the Bay Area. you don't see 10-15% price drops in a year without corresponding drop in demand.
I guess they’re moving to Oakland, where rents were up 5% YoY.
Re: San Francisco, Silicon Valley rents plunge amid downturn
#19Interesting news. I've heard that real estate prices haven't budged much and with the stock market remaining relatively strong, I wonder if we will see a corresponding rebound in rent sometime soon.
The demand drivers of students and tech workers is gone, and the street conditions are abysmal.
The volume of anyone else obsessed with 'networking' is much lower.
Re: San Francisco, Silicon Valley rents plunge amid downturn
#20so far it seems home prices are still high though. however, the data is kind of unnatural because many are not buying homes right now while many are not listing homes. I'm very interested to see how home prices in markets like seattle, nyc, and sf play out over the next year or so.