After years of rapid growth, San Francisco Bay Area rents continue to increase but are finally showing signs of a dramatic slowdown.
Overall rent in the greater Bay Area in 2019 increased just 1.2 percent year-over-year, according to Rent Cafe.
Ken Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at UC Berkeley, is noticing the slow growth, reports The San Francisco Chronicle.
"Several years ago, we had year-over-year growth exceeding 10 percent, so [this is] sharp deceleration," Rosen said.
Rosen cites three main factors impacting prices. First, new supply is flooding the market, especially in Oakland and the Silicon Valley. Second, skyrocketing rents in the last decade mean the region has finally "reached a rent level that pushes against affordability ceiling for many households," he said.
Finally, a substantial increase in "out-migration," with people and jobs leaving the region, is making the market less competitive, partially because of "The general deterioration of quality of life."
Apparently, there is only so much wacko lefty nonsense that many people can take, especially when it leads to regular sh*tting on the streets.
The slowdown is particularly remarkable given that rent controls limit construction in the region and have a tendency to push prices higher for new apartments.
-RW
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