For the first time, typical rents in San Diego have surpassed those in San Francisco, according to a new report from Zillow.
The typical rent in San Diego is now $3,175, compared to $3,168 in the Bay City. That’s a significant change from March 2020 when rents in San Francisco were 29% higher than San Diego.
The highest rents in the state and nation are in San Jose ($3,411), followed by New York ($3,405). San Diego and San Francisco ranked third and fourth respectively.
Zillow’s report is based on rental data from June 2023. Like other analyses, the company found a ‘cooling’ of the rental market, particularly in the western United States.
“The annual growth rate of the Rent of Primary Residence component of the Consumer Price Index (CPI) fell from 8.80% in April to 8.66% in May,” according to Zillow. “Moreover, the monthly growth rate is hovering around 0.5% (5.7% annualized), which if sustained will further pull down the observed annual growth rate, particularly measured against the high CPI readings from June to December last year. It takes time for that disinflation to fully factor into the monthly CPI prints, though, and thus the large shelter component in both CPI, and the Fed’s preferred Personal Consumption Expenditure price index, will contribute to the appearance of elevated inflation for several months to come.”
Read the report here.