How has the rental market in San Francisco changed compared to pre-pandemic levels?

While rents are surging citywide, they are only now matching or exceeding pre-pandemic levels, as the city's rental market saw a steeper decline during the pandemic compared to other major cities.

What is the impact of the new mayor, Daniel Lurie, on the rental market in San Francisco?

The new mayor's promises to address homelessness, mental health, and drug issues, as well as build more affordable housing, have contributed to an increase in rental demand as people are "wanting to be here" and the city's narrative is changing.

Home / Business and Economy / Rental Prices Skyrocket 11% in San Francisco as Demand Surges

Rental Prices Skyrocket 11% in San Francisco as Demand Surges

Q: What is driving the rental frenzy in San Francisco?

The return-to-office mandates, the arms race for AI talent, and San Francisco's persistent housing shortage are fueling the rental frenzy in the city.

23 Aug

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Summary

Apartment rents in San Francisco have jumped 11% in the last year
Competition for rentals is fierce, with open houses attracting 30+ prospective renters
AI workers make up 30% of recent rental applicants in the city

As of August 23rd, 2025, San Francisco's rental market has experienced a dramatic resurgence, with apartment rents jumping 11% in the past year. This rapid increase has created a highly competitive environment, with longtime leasing agents describing the current situation as the most challenging since the dot-com bubble.

The city's rental market came roaring back this year after a prolonged pandemic-driven slump. Apartment rents have soared by double-digit percentages, the fastest rate among any major U.S. city. Open houses that attract 30 or more prospective renters in a single afternoon have become a common occurrence, and listed rents are often just a starting point for negotiations.

Factors fueling this rental frenzy include the return-to-office mandates, the arms race for AI talent, and San Francisco's persistent housing shortage. Workers in the AI industry have made up about 30% of recent rental applicants, according to Corey Eckert, executive vice president of leasing at Structure Properties. The city's highly ranked UCSF Health System has also contributed to the surge in rental demand, with healthcare workers joining the competition for scarce apartments.

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