Zillow – Zillow – No, New York rent is not more expensive than San Francisco | Fintech Zoom
Data from Zillow and StreetEasy also contradict Zumper’s analysis, showing that overall prices in San Francisco are still higher than New York’s. The Zillow Observed Rent Index on the Golden City was $3,082 in July, compared with $2,752 in the Big Apple, and the median price for a one-bedroom apartment in the Big Apple was $2,450 last month.
“That’s a big difference,” said StreetEasy economist Nancy Wu.
The Zumper data may also be skewed because it represents only rental units that are on the market, and it doesn’t include units that are rented, said Mark A. Willis, a senior policy fellow at New York University’s Furman Center.
Still, with the pandemic winding down, rates are rising at a faster pace in the city than they are in San Francisco, Wu said.
“July is typically peak renting season in New York City, and a lot of New Yorkers who signed leases with concessions last year are facing the higher rents now,” she said.
Manhattan’s median asking rent rose to $3,000, the highest it’s been in a year. In some popular neighborhoods in downtown Manhattan, rents have already surpassed their pre-pandemic levels.
Discounts are also disappearing, she said. In the summer of 2020, nearly 30% of rentals in New York were discounted. This year just 9% of landlords cut their rent prices to try to make up for lost time and money.
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Growth has been slower in San Francisco because tech workers make up a disproportionate share of its residents, and tech companies are more likely to have adopted broad or permanent work-from-home policies, the Zumper report said.
“This allows those workers to live anywhere they want, and many of them have decided they don’t want to live in San Francisco,” the analysis said.
But even with the lag in rent increases, “New York is still not as expensive as San Francisco,” said Wu.