SAN FRANCISCO RENTS DROP DRAMATICALLY

As Facebook, Google, and other Bay area tech companies have decided to permanently allow employees to work at home, apartment rents in the area have suddenly plunged.

In June, a typical one-bedroom apartment in the San Francisco area was renting for 9.2 percent less than in June 2019, bringing the average rent to its 2017 level of $3,360.

In Google’s home town of Mountain View, CA, rents dropped nearly 16 percent; Menlo Park, where Facebook is based, saw rents fall 14.1 percent. Rents in the town of Cupertino, Apple’s headquarters, were down 14.3 percent. In Palo Alto, the heart of Silicon Valley, rents shrank 10.8 percent.

In comparison, rents fell an average of 3.6 percent in Los Angeles in June and 0.2 across the U.S. overall.

“Turns out a lot of the online hype about Silicon Valley's move to remote [work] is … borne out by data,” tweeted Anthemos Georgiades. CEO of Zumper, a San Francisco rental service.

TREND FORECAST: This is old news for Trends Journal subscribers. We had forecast a sharp decline in commercial real estate at the onset of the government lockdown and reports of companies increasing the amount of employees that can work at home.

 

2 Comments
  1. Jay Jericho 2 months ago

    How interesting. Some of the stories about this precinct are along the lines of people who were earning good salaries for general admin support roles, could only afford to live in these areas in bunk bed dorms. With other professionals. Or worse. Living in their RV or sleeping in a tent in someone’s back yard. Most don’t. They just shelled out about 50%+ of their salary on rent. Sometimes higher. Some Airbnb guests that stayed at our place told us these stories direct. Not just gossip. Great topic this one.

  2. todd glyer 2 months ago

    Wait, I’m confused. If people are working from home, why are apartment rental prices dropping? Were the businesses being run out of company owned apartments?

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