Understanding the Market for Apartment Rentals in San Francisco

Cities Reference

Considering a move? Wondering what the market for apartment rentals in San Francisco will be in near term? If so, you need to be aware of a few facts that set the city apart from other locations. As a city, San Francisco attracts renters. In addition, only one third of the people who live in the city actually own their own home, which is half the national average. In addition, the current trend for apartment rentals in San Francisco favors landlords over renters, as increased demand pushes prices up.

Recent reports indicate that the market for apartment rentals in San Francisco and the Bay Area cities led the nation in terms of rising costs. In 2011, rental prices increased more than 10 percent in the region. Many people seeking apartment rentals in San Francisco face stiff competition for the few vacancies that do come on the market.

The rise in rental costs is a byproduct of improvements in the economy, particularly the technology sector. Mobile technology firms are growing and attracting new workers. The trend runs counter to the home-buying market, which remains soft.

Given the tight market for apartment rentals in San Francisco, some landlords may ask for a holding deposit. This occurs when a unit is not immediately available. In most cases, a holding deposit amounts to less than one month’s rent. If you are asked for a holding deposit, make sure to the agreement is backed by legal understandings on both sides.

Many experts now recommend that prospective renters consider using professional services to help them in their search. These services know the market for apartment rentals in San Francisco and can save their clients significant time and aggravation that comes with going it alone.