economy Markets

Renting In New York And San Francisco Just Got A Lot Cheaper. Any Takers?

If it's evidence of de-urbanization in the US you seek, consulting recent housing market data is a good place to start. Nearly every indicator you care to consult suggests the market is in a bubble, fueled in part by the proliferation of work-from-home arrangements. The distinct possibility that such arrangements will become a fixture of the economy, at least for occupations that are amenable to remote work, has catalyzed a mini-exodus from some urban centers. While it's probably too early to write the obituary for America's largest cities, it's entirely fair to suggest that the new, post-pandemic reality, combined with record-low mortgage rates, may ultimately undercut efforts to revive economic activity in densely populated downtown areas. Read more: What If We’re Watering A Dead Tree? No sooner had I put the finishing touches on the linked post above (which is a lengthy treatment of this subject) than a reader brought to my attention the latest data from RealPage, which shows rents collapsing in some of the country's largest metro areas. Specifically, rents fell 11% YoY in San Francisco and nearly 9% in New York during the third quarter. According to RealPage, some 11,700
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5 comments on “Renting In New York And San Francisco Just Got A Lot Cheaper. Any Takers?

  1. mfn says:

    Luxe condo developments, too. My Manhattan neighborhood (Upper West Side) is littered with brand-new two-thirds-empty condo towers. And don’t get me started on empty storefronts along major commercial corridors like Broadway.

  2. derek says:

    I wonder if jammed highways, horrendous flooding, “subpar” public schools and numbing conformity will continue to attract young people to leave the cities.

    • runamok says:

      Not to mention the risk of getting popped for a DUI after a couple of drinks at the bar with some buddies. Said bar is only a one-mile walk away; but, it’s on a sidewalk that affronts a traffic lane along a dreary boulevard with strip mails.

      I can imagine a generational shift out to the suburbs. More books will be written in 2030 about how horrible and abject failures American suburbs are. Critics of urban design, and book reviewers alike, will compare the 2030 editions to counterparts published in the ’60s.

  3. joesailboat says:

    Your basic junior high kid of today will hit the city 10 years from now in droves. The safe,good boring of the suburbs is a great place to raise a kid but a dead end for coming of age.

  4. Drake Dayton says:

    I live 60 miles, 90 mins on a good day, outside of Seattle. All my new neighbors are Oracle, Microsoft, and Amazon techies building home offices. Hope my commute gets better!

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