Rent in this California city exceeded San Francisco's for the first time. Here's how much it costs per month (2024)

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Rent in this California city exceeded San Francisco's for the first time. Here's how much it costs per month? ›

Also, for the first time ever, rent in San Diego has surpassed San Francisco. Renters in America's Finest City are now paying an average of $3,175 per month, slightly higher than those who live in the City by the Bay ($3,168/month).

San Diego surpasses San Francisco; becomes 3rd most expensive rental market in US. San Diego has a more expensive rental market than San Francisco for the first time as the city become the third most expensive in the United States.

The average rent for apartments in San Francisco, CA, is between $2,760 and $4,668 in 2024. For a studio apartment in San Francisco, CA, the average rent is $2,760. When it comes to 1-bedroom apartments, the average rent in San Francisco, CA, is $3,525. For a 2-bedroom apartment, the average rent is $4,668.

“The Bay Area has among the strongest economies in the world, which attracts talent and infuses an abundance of money in the region,” Lurie writes in an email. With that, comes high salaries — according to Bloomberg, the average tech worker makes $165,000 a year — which results in "high housing costs," explains Lurie.

According to Zillow's June 2023 rental market report, San Diego emerged as the top city with an average rent of $3,175, surpassing San Francisco's average rent of $3,168. The study says that this is the first month on record in which typical rents in San Diego exceeded those in SF.

Effective March 1, 2023, the allowed rent increase percentage is 3.6%. The percentage is effective through February 29, 2024. This amount is based on 60% of the increase in the Consumer Price Index for All Urban Consumers in the Bay Area. See previous years' allowable annual rent increase amounts.

Limits on Rent Increases

Landlords cannot raise rent more than 10% total or 5% plus the percentage change in the cost of living – whichever is lower – over a 12-month period. If the tenants of a unit move out and new tenants move in, the landlord may establish the initial rent to charge. (Civ. Code § 1947.12.)

That's why experts recommend renters looking for the best rent prices should plan to move between October and April, with the lowest rental rates on average between January and March.

In San Francisco, you need to make $116,000 to afford a one-bedroom at fair market price, but renters only earn a median income of $93,303 — a difference of over $22,000.

Here are the salaries needed to live comfortably in 15 major U.S. cities: San Francisco metro area: $84,026. San Diego metro area: $79,324.

Why is SF so unaffordable? ›

Years of insufficient housing production coupled with a booming economy have finally caught up to the city; Stringent regulations for development make building any kind of housing difficult and time-consuming; A democratic public process that gives everyone a voice; The city has a strong anti-growth culture.

San Francisco rents continue to drop, and they probably haven't hit bottom. Median rent prices in San Francisco are the lowest they've been since mid-2021. Experts say they could decline a bit more as the rental market slows for the winter.

* Limited land availability: San Francisco is located on a peninsula, which limits the amount of land available for development. This drives up the price of housing, as there is more demand than supply.

In the publication's rankings for 2023-2024, San Diego was deemed the most unaffordable metro area based on median gross rent and annual housing costs for mortgage-paying homeowners.

San Diego's residential rent narrowly surpassed San Francisco for the first time on record in June, according to Zilllow. San Diego's monthly rent was up 5.3% to $3,175 during the past year, one of the largest gains in the country. It is now the third most expensive U.S. market behind San Jose and New York.

San Jose is also expensive to live in, though it isn't quite as bad as San Francisco. A person, on average, needs about $2,000 less a month to live in San Jose.

Of the fifteen markets that had the largest rent increase in Q1 2024. Out of the 755 rental markets analyzed in this report, Iowa City, IA tied with La Quinta, CA for the largest year-over-year rent increase of 33%, followed by Kokomo, IN (29%).