The Most Expensive Rental Market in the Country is...

New York City now holds the title as the most expensive rental market in the country, snagging the top slot from long-term holder San Francisco. When the pandemic rolled around, dense cities were hit hard, especially New York City and San Francisco. But New York has rebounded much better with rents up nearly 20% while San Francisco rents are up just 5%, reports CNBC. The median price for a one-bedroom rent in San Francisco is $2,800 but $2,810 in New York City. Boston, San Jose, and Washington, DC follow behind those two to round out the top five most expensive rental markets.

San Francisco and New York were hit hardest by the pandemic, as offices shut down and residents fled to either smaller cities or the suburbs. In New York especially, there was a major outflow to the Sun Belt.

Just 8 months ago, at this start of this year, the median one-bedroom rent in San Francisco had fallen nearly 24% compared with March 2020, and in New York City it was down nearly 18%. San Francisco, however, was still more expensive than New York by $330.

Since January, New York rents have jumped nearly 20%, but San Francisco rent is up by only about 5%.

“Tech workers make up a disproportionate share of residents in the city, and tech companies are more likely to have adopted broad or permanent work-from-home policies. This allows those workers to live anywhere they want, and many of them have decided they don’t want to live in San Francisco,” according to Jeff Andrews, who authored the Zumper report.

Nationwide gains
While New York may be seeing the strongest rebound, cities across the nation are seeing more rental activity, and in some markets even bidding wars, which are usually only seen in the for-sale market. In the spring of this year, rental applications in New York City doubled compared with 2020. San Francisco saw a 79% increase in prospective renters, and Seattle experienced a 55% jump, according to RentCafe, another rental listing website.

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