This took me awhile to put together so that’s why there’s been a delay. I’ve been talking with people over the past few weeks, many of whom have been in San Francisco for less than a year. As you all should be aware renting in San Francisco is ridiculous right now and it looks like it might only get worse over time.
I have heard people are paying anywhere from $1k-$5k for rent in this town and the difference really just depends on the number of roommates and the size of the closet you’re renting. I have to smirk when people say, I love living in Pacific Heights as they walk out of an unmarked door next to the garage that isn’t even ornate enough to be an entrance to an legal in-law or servants quarters on one of these mansions, but it’s more of a room built off of the garage that’s not fully furnished. A good deal for $2k-$3k in Pacific Heights I suppose. Many of these people have to make anywhere from $24k-$52k/year just to afford rent. That’s a pretty stiff bill when you think about it and many of them are resorting to credit cards which just brings them to a time when they run out of money after a year long spring break party where they end up owing a huge amount of money that they haven’t made since they weren’t making that to begin with.
These people are not rich. Last time I checked you didn’t move to San Francisco and move into Pacific Heights. It was a place the rich people of San Francisco earned, not bought. Most of the new renters I meet are 20 somethings with a job that might pay $25/hour that are supplementing their income from help from their parents or whoever can lend them some some money until they can get a better job. These people push up the rental prices, but don’t stay long. Most of these people aren’t even renting an apartment, but usually as mentioned above a room off a house…a very small room.
Then you have the people that have been renting for 10-20 years which due to rent control makes their landlords want to move them out. It’ll cost the landlord around $8k [or more] per person and the landlord will have to occupy the house for three years to successfully get an Ellis Act eviction to go through. That can be kind of costly in my neighborhood where a 3 bedroom house is renting for $5k, but has a fourth person living in the dining room and a fifth person living in the living room. Sometimes a couple or two will share a room pushing the price to get the renters out from $40-$56k. That’s almost a year’s rent and they have to live there for three years meaning the cost to the landlord can be in the $240k range.
If the landlord decides to flip the house and profit off the sale they better be sure they bought the house at least 10 years ago to make a decent return on their investment. Many of the landlords that I know of in my neighborhood haven’t owned the homes they purchased that long yet so they actually would do better just holding on and renting unless they’re going to pull an illegal Ellis Act eviction.
Even when renting was actually somewhat reasonable in San Francisco I always thought of it as a temporary sort of thing and I think that is part of the reason why most of the people I meet today have been in San Francisco for less than a year. San Francisco going back to the 1800’s was a happening place and if you look back on articles from the news back then you’ll see people complaining about how expensive it was to have to pay $3/month to rent a house and how San Francisco was turning into a town for only the rich.
People will always want to live here, not Daly City, not Oakland, but San Francisco proper. Sure a few might take the outlying areas and say they live in San Francisco, but they know full well that they don’t. If you’re seriously thinking of staying here longer than 10 years, renting at this point in time isn’t the best option anymore in my mind. If you’re lucky and you’ve got a landlord that likes you and isn’t trying to get rich [is there really a landlord like that anymore?] You might be able to work things out, but that’s a slim chance. For the long term you probably want to buy a house, or do you? See what I have to say tomorrow to find out what’s on my mind.