Press release
Realtor.com® October Rental Report: Rent Declines Accelerate in Tech Hubs as Remote Work Prompts the Desire for More Space
- Rents continue their downward spiral throughout the San Francisco Bay Area along with Manhattan, Boston, Seattle and Washington, D.C. - Nationally, the
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[{"type":"text","content":"- Rents continue their downward spiral throughout the San Francisco Bay Area along with Manhattan, Boston, Seattle and Washington, D.C.\n - Nationally, the median rent for studio units was $1,316; $1,495, for one-bedroom units; and $1,869,for two-bedroom units\n - While studio and one-bedroom rent growth rates continue to trend downward or remain flat, two-bedroom units are climbing closer toward pre-pandemic levels\n\n\nSANTA CLARA, Calif., Nov. 13, 2020 /PRNewswire/ -- Rents in the nation's tech hubs continued their descent in October, falling by one-third for a studio apartment in San Francisco year-over-year, according to the realtor.com® monthly rental report released today. The report also showed that while the declines have begun to slow down nationally, renters are seeking both affordability and more space the longer they work from home.\nNationally, rental growth rates are still far below where they were pre-COVID, but declines are starting to lessen. \nThe median studio unit rent in October was $1,316, down 0.8% year-over-year. The median one-bedroom rent in October was $1,495, up 1.1% year-over-year. The median two-bedroom rent continued to increase in October. At $1,869, it was up 2.6% year-over-year, approaching its pre-COVID annual growth rate of 3.5%.\n\"The combination of tech companies extending their work from home policies through mid-2021 or even indefinitely, and the desire for more space, especially with the weather cooling, is putting pressure on rents in the most expensive urban metros and tech hubs,\" said realtor.com® Chief Economist Danielle Hale®. \"Just as we saw with buyers, many renters appear to be looking to escape their urban life altogether, while others are looking for more space. Nationwide, rents for two-bedroom units have begun to bounce back and if the trend continues, price growth could return to pre-COVID levels early next year.\"\nSan Francisco led the nation in declines with monthly rents falling 33.3%, 26.3% and 23.4% for studio, one-bedroom and two-bedrooms units year-over-year, respectively. Rents for studios and one-bedrooms in nearby Santa Clara and San Mateo counties also saw double-digit decreases in October. \nOutside of the Bay Area, Manhattan, Boston, Seattle, and Washington, D.C. were among the metros seeing the largest year-over-year declines. These markets also represent s...