SAN FRANCISCO (KGO) – A new report on property prices in the Bay Area released Tuesday shows an obvious trend: people are fleeing high-priced San Francisco for cheaper locations.
According to Realtor.com, the average price for a studio apartment in San Francisco is 31% lower than last September.
That number represents the largest drop in rental rates for any county in the country, according to Realtor.com.
The monthly price for a bedroom in San Francisco has also decreased.
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The average price is now at $ 2,873, down 24.2% from last September.
Property prices in San Mateo and Santa Clara counties, the heart of Silicon Valley, also fell.
The average price for a bedroom decreased by 12.5% and 12% respectively year-on-year.
Lisa Choi has lived in San Francisco for 20 years.
She recently decided to give up her city apartment for a less urban setting and is packing her things up for her next move.
“I wanted more space, more nature and outside,” explains Choi. “So I’m leaving town.”
While Choi had longed for more space before the pandemic, it sped her search for something else.
“I love San Francisco,” says Choi, “but I’m not a big city girl anymore.”
Choi plans to move to North Bay, where she can still work remotely, with the added bonus of a large back yard.
The flight of people from the peninsula has been felt in other parts of the Bay Area in the form of stagnating or rising property prices.
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David Stark of the Bay East Association of Realtors explains that the contrasting trends are due to different lifestyle preferences.
“While pressure on rental units in San Francisco may be lower in some sectors, pressure on home ownership has increased,” says Starks, “especially in suburbs in the East Bay.”
“We may not be able to see the big declines in the outskirts,” he explains, “because demand is still high in those areas.”
Some of this may be due to the people leaving San Francisco and Silicon Valley, but the California real estate market is still suffering from a long-standing shortage of housing, according to Stark.
“We have decades of job growth in the SF Bay Area, but we haven’t had decades of new housing creation,” explains Stark.
Rental rates have risen in some areas, including Sacramento, which is on Realtor.com’s top 10 list for greatest rental walks.
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Compared to September last year, the average monthly rental for a studio in Sacramento has increased 16.2% to $ 1,400. And a bedroom is up 10.1% to $ 1,415 per month.
Former San Francisco resident Hayes Hyde moved from her apartment to a Sacramento home in May that she bought as an investment property in Sacramento in 2016.
“Everyone comes here,” laughed Hyde.
Now that Hyde’s work is completely out of the way, the Sacramento house is now her primary residence.
“There’s a lot more space to move about, you’re not stuck in traffic, people ride bikes everywhere,” says Hyde. “So I’m not surprised at all.”
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