In this blog, I want to share my opinion of the rental outlook for San Francisco in 2015. Overall, I think the market is going to be great. I don’t foresee a huge frenzy like we saw in the spring and summer of 2014. The market has cooled down a bit and leveled off. We have sustained steady job growth in the Bay area, which is primarily fueled by the tech industry and biotech. There are a lot of young, well-paid employees moving to the San Francisco bay area and they are looking for apartments. Therefore, well-priced, well-maintained properties in good locations will continue to receive very strong demand throughout 2015.
The other segment of our market includes people working here who are not in the highly paid tech industries. They are also looking for housing. We have seen that they aren’t moving into super hot locations, but they’re still picky about where they’re moving and what the amenities are. In these situations, people are doubling up. We have seen two roommates move into one bedroom apartments and three roommates move into two bedroom apartments. We have good success with these situations. It’s important to monitor who’s living there, and for purposes of the San Francisco rent control laws, we make sure unauthorized roommates aren’t moving in without our knowledge and creating tenancies. This can be a positive situation and it’s contributing to the strength of our rental market.
Overall, San Francisco will continue to be a leader in the U.S. in terms of the rental market’s strength. There are great opportunities to invest here.
If you have an apartment building, a condo or a single family home you’re considering renting out, please contact us at Gordon Property Management. We would love to come out and look at your property and tell you what we can do for you.