In San Francisco, average second-quarter rents, on a constrained supply of units, have jumped 7.8 percent from a year ago to $2,498, which has led investors to gobble up the few available units and renters to ponder a future outside of the city, reports the Wall Street Journal with data from market research firm MPF Research.
Of metros with 100,000 or more rental units, San Francisco led the way with its quarter-over-quarter rent increase, MPF data showed. Its Bay Area cousin, Oakland, Calif., was second with a 6.9 percent increase in the second quarter from the second quarter a year ago.
Some multifamily units for sale have up to 30 bidders, the Journal reported. And as that demand raises rents, renters are left scrambling to adapt.
“It’s getting a little out of control,” said Alexandra Goldman, a renter quoted in the story who got notice last October that the rent on the five-bedroom home she was renting in San Francisco with other roommates was jumping from $6,000 per month to $11,000 per month.
Source: Wall Street Journal