After the dot-com bust there was a mass exodus of people leaving the Bay Area, many of them from the city and county of San Francisco. This caused a shortage of apartments to turn into a surplus of apartments, and with the laws of supply and demand the rents dropped dramatically even though real estate prices remained flat and then increased dramatically in the last two years. Bay Area home prices, including San Francisco, at are a two decade high. San Francisco county’s median home price in June was $695,000!

A new article shows that rents are slowly creeping back up, with the average one-bedroom in San Francisco renting at $1,786 per month in the last quarter. This is bad news for renters, but good news for property owners. With rents going back up perhaps rents will be able to cover the stratospheric mortgages in this area sometime soon. This may allow some home owners to rent their homes and purchase additional property. Well, one can hope anyway.

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