Potential Bay Area homebuyers who have been sitting on the fence waiting for the market to cool should take note: Rent prices in two of our local cities are increasing at a faster clip than asking prices for homes.
According to a recent Trulia study, San Francisco and Oakland led in the nation in year-over-year rent price gains last month. Since September 2013, rents in San Francisco have increased 15.4 percent, while Oakland rents have grown by 14.2 percent. Trulia’s data shows that San Francisco rent prices are the most expensive in the U.S., putting the median monthly rent for a two-bedroom unit at a staggering $3,600.
Although homes in both cities have seen solid appreciation over the past year, asking prices aren’t increasing at the velocity that rents are. In San Francisco, condominium asking prices were up 12.7 from last September, while single-family home asking prices increased 9 percent. In Oakland, asking prices rose 11.9 percent from a year earlier.
October 13, 2014 by Pacific Union •