Tuesday, November 3, 2020

The Cities Where Rents are Crashing


Here are 25 cities where rental prices have collapsed since the start of the lockdowns.

Notes WolfStreet:

The rental market is liquid and fast-moving, and when rents change a lot, it creates churn. When rents drop sharply, tenants whose leases have expired can go for a cheaper place, or a nicer place for the same rent – the “free upgrade” that is now becoming popular...

The unemployment factor is big in San Francisco: 76,800 people were certified for unemployment benefits in August, according to the latest data from the California Employment Development Department – a huge number for a city the size of San Francisco.

Some of those people made lots of money and have enough wealth and are comfortable not working for a while. But for others, living in the expensive city was nip-and-tuck when they still had a job. When they found themselves on unemployment compensation, there was no reason to blow it all on rent.
In a city like San Francisco, the outflux is the combination of the move to work-from-anywhere and unemployment. Some of the younger recent arrivals may have gone home and moved back in with their parents – and may have exited the rental market altogether.

I see moving vans every day across SF. Most moving out. And something that is very unusual for the Foggy City is "for rent" signs everywhere.

But the rent collapse isn't occurring everywhere, here are second-tier cities where rents are climbing:



  1. Increasing rents in Newark, NJ?! Talk about out of the frying pan and into the fire.

  2. I read a report recently (can't recall where) that 65% of rental vans in New York over the last few months were moving goods to storage facilities, not to residences out of the city, so that the writer surmised that these people were not necessarily permanently fleeing NYC, just waiting things out. I don't know how one could collect that data -- who specifies where they are going? -- but it was an interesting alternative theory.