San Francisco Posts Biggest Rent Decline Of Any Other City

San Francisco rents are becoming a bit more affordable. Rents declined 3.6% year-over-year in February, the most of any U.S. city, according to data from Yardi Matrix. With average rents of $3,300 in San Francisco, rents are still high compared to national average rents, which declined by $9 to $1,306. Oakland and San Jose also posted declines in February of 0.7% and 0.5%, respectively.

A delivery of thousands of units in San Francisco this year and next year continue to contribute to this decline, which also has resulted in landlords offering concessions to prospective tenants. Increased fees, affordability set asides, construction costs and land constraints have made it more difficult for new projects to pencil, which could push rents back up after 2018.

In other parts of California, rent is heading upward. Stockton and Sacramento had the highest rent increases in the country with 12.3% and 10.7%, according to Rent Cafe. Sacramento has piqued the interest of new residents and developers alike as a more affordable option thanks to its proximity to the San Francisco Bay Area. California cities with single-digit increases include Riverside, Anaheim, Chula Vista, Los Angeles, Fresno and Long Beach.

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