Overall, San Francisco rents increased 13.5% in 2014. But when you break it down by neighborhood, it’s clear that some neighborhoods are driving that increase more than others. For example:
- Mission was up 20% ($3,240/mo. for a one-bedroom apartment)
- Noe Valley was up 29.2% (the largest rental increase in 2014 by neighborhood)
- NoPa was up 15%
- Outer Sunset was up 16% ($2,100 for a one-bedroom)
On the other hand, some north side neighborhoods have peaked and are experiencing declining rents. For example:
- Nob Hill was down 6.3%
- Russian Hill was down 4.3%
- Marina and Pacific Heights were both down 1.4%
For reference, if you purchased a property in the Mission for $800,000 with a 20% down payment and a mortgage of $640,000 at 4%, you’d pay ~$3100/month on your mortgage. This does not reflect your after tax MI deduction.
$3240 for rent vs. $3100 to own?