By Adam Brinklow : curbed – excerpt
“It will take a huge lack of interest from renters to push down rent prices in SF”
In January, the median market price for a one-bedroom in the city on some platforms was $3,500. It would be awful irony for market rent prices in SF to significantly plunge at a time when most renters weren’t primed to take advantage of it—but that inability to pay is precisely what would drive any price depression.
“If unemployment soars, especially if it’s hitting younger people in their 20s and early 30s hard, […] rents will probably be hit quite hard,” says Patrick Carlisle, an analyst with Compass Real Estate.
Carlisle tells Curbed SF that younger workers who arrived recently in SF in search of high-paying jobs may “pull up stakes” and relocate in the face of joblessness and still-soaring rents. He compares this scenario to the bursting of the dot-com bubble 20 years ago, after which rents dropped quickly and dramatically as landlords had to chase after new renters with far less cash on hand… (more)