by Wolf Richter : wolfstreet – excerpt
The rental market is in turmoil after jobs and people left, and price discovery has set in. Falling rents are a market-based solution to the “Housing Crisis.”
The median asking rent for one-bedroom apartments in San Francisco, after the two highly-hailed-and-touted increases in a row, fell 2.5% in July from June to $2,720, according to Zumper. Since June 2019, the median asking rent has fallen 27%:..
There is a peculiar phenomenon in the local media in San Francisco: When rents were spiking a few years ago, they lamented the “Housing Crisis,” where teachers couldn’t afford to live in the City where they taught. And they clamored for subsidies to resolve this situation. Then rents plunged, starting in mid-2019, and instead of praising this as the market-based solution to the Housing Crisis, they painted it as some dark nasty phenomenon that needs to be stopped. This was particularly the case late last year.
And when rents ticked up in May and June for the first time – we’re talking about “asking rents,” a market aspect we’ll get into in a moment – the local media hailed it as the great recovery of San Francisco, though it would worsen the Housing Crisis that they had lamented earlier. And now asking rents fell again…(more)