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We just ran a massive experiment, called Covid-19, which caused about 10% of San Francisco residents to leave the city. This is not quite the same thing as an
by jlmorton 5y ago
We just ran a massive experiment, called Covid-19, which caused about 10% of San Francisco residents to leave the city.
This is not quite the same thing as an immediate increase in supply, but instead a large drop in demand. The net result is the exact same thing: a large increase in the vacancy rate, which resulted in a rapid and dramatic decrease in median rents.
- austincheney 5y agoHow much of a decrease on average?
- compiler-guy 5y agohttps://www.sfweekly.com/news/what-happens-to-rents-after-the-vaccine/ https://www.sfweekly.com/news/what-happens-to-rents-after-th... Has the decrease at about 22% at one point. Lowest rents since 2013. They seem to have gone back up somewhat since, but that is a big adjustment and reflects excess supply.
- austincheney 5y agoThat’s rents. What is the change of ownership value?
- ruggeri 5y ago35% per bloomberg. https://www.bloomberg.com/news/articles/2020-12-08/san-francisco-apartment-rents-drop-35-as-tech-embraces-remote-work-during-covid https://www.bloomberg.com/news/articles/2020-12-08/san-franc...
- koolba 5y agoIt’s a terrible example though as the people with the most liquid financial situation are the ones that left. The ones that remained can’t even afford to rent they U-Haul to get out of Dodge. They’re stuck treading water and at best will get Newsom to buy their vote^W^W^Wpay their back rent.
- compiler-guy 5y agoIt’s a terrible example of housing policy and how we want the city to develop and mature, but it is still a perfect demonstration of how excess supply drives down prices.