Steep Rise in Rental Rates in San Francisco and San Mateo Counties; Influx of Workers

The average rent prices have increased sharply in San Francisco and San Mateo Counties. During the second quarter of 2010, the monthly average for rent in San Francisco was $2,214, but during the second quarter of 2011, that average jumped to $2,422, which is an 8.6 percent increase. The percent increase in San Mateo County is even higher, as the average monthly rent was $1,646 during the second quarter of 2010 and rose to $1,815 in 2011, which is 9.3 percent more. So why are rent prices on the rise? According to experts, it’s partly due to the influx of tech industry workers in the region who want to rent as opposed to buy. Consequently, rental supply has decreased. The homeownership market has also been dismal. RealFacts owner Sarah Bridge commented that “Talent is coming into the area. It’s not that there are so many jobs, but the ones out there are paying well. They’re not big into being tied down to a big piece of real estate.” Many believe that renters will be pushed out to the outskirts of the region due to the high prices.

According to Real Facts, the following are the average rent per unit type. The first number represents San Francisco County and the second number represents San Mateo County:

Studio $1,821; $1,152
One bed $2,229; $1,638
Two bed, one bath $2,394; $1,838
Two bed, two bath $3,272; $2,272
Three bed, two bath $2,975; $2,787
Three bed, three bath $3,609; $3,049