This is always the question renters ask themselves....
You have been renting for a while. You are not saving or investing money but just spending so that you have a place to live. It's not cheap to do so in Bay Area. Many renters spend a way too much money to rent.
Then 2020 came and gone now. You might have read this article on SF Chronicle...
The rent in San Francisco declined 27% according to this article. That is simply close to 30% saving to renters. I heard many renters got rental fee reductions from landlords. It's not only in San Francisco. I feel it in East Bay, especially in Oakland.
I recently had a chance to help homeowners lease their condo in Jack London Square. It's one of the popular area for young professionals. A couple years ago, it was so easy to find renters. So many people came for one day open house and by the end of the open house. I have a few applications filled and chose a best tenant! 2 years later, after reducing rent about 18% and more than a month later, I finally found a tenant. Renters are looking for a bargain unit. Some told me that there were a couple of months free rent included. Very competitive!!
It starts affecting real estate sale, especially condo markets in urban areas. The condo price in SF is declining. It is happening in Oakland, too. I am not sure if this will be a trend in 2021 and beyond. But renting may not be such a bad idea at this time.
Happy New Year and thank you for checking my blog!!
Hiroko