Tech hub rentals lose luster as coronavirus fuels urban exodus
Rent in San Francisco fell by one-third for a studio apartment
Rental prices within the nation's tech hubs dwindled last month amid an exodus of workers seeking larger living spaces as shutdowns due to the COVID-19 pandemic force them to work from home.
EXPENSIVE-CITY EXODUS LEADS TO MASSIVE RENT DECLINES IN NYC, SAN FRANCISCO
The desire for more space coupled with the fact that tech companies are extending their remote-working policies, "is putting pressure on rents in the most expensive urban metros and tech hubs," Danielle Hale, Realtor.com chief economist, said of the findings in a new report from her organization.
The Transamerica Pyramid, center, and Salesforce Tower above Columbus Avenue in San Francisco. (AP Photo/Eric Risberg, File)
Overall, San Francisco saw the biggest declines with monthly rents for studio, one-bedroom and two-bedrooms falling 33.3%, 26.3% and 23.4% respectively.
Neighboring counties including Santa Clara and San Mateo also saw double-digit drops, according to the report.
NY LOSES MORE RESIDENTS THAN ANY STATE DURING CORONAVIRUS PANDEMIC
Manhattan, Boston, Seattle and Washington, D.C., which are some of the most expensive locales in the country, followed San Francisco with among the largest year-over-year declines.
The median studio rent in Manhattan was $2,395 in October, decreasing roughly 20% from the prior year although it was higher than in September. The median rent for a one-bedroom unit was $3,250, down 16.7%.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
While rental growth rates across the nation remain far below pre-COVID times, the declines are starting to narrow, according to the report.
Nationally, the median studio unit rent in October was $1,316, down 0.8%, while the median one-bedroom rent was $1,495, up 1.1%.