In San Francisco, one of the most expensive apartment markets in the world, property managers may see rents continue to increase for years to come, according to The San Francisco Examiner.
The Examiner notes that due to the city's recent technology industry hiring boom, San Francisco has seen a much faster recovery from the 2008 crash than many other cities across the country. In an interview with the San Francisco Business Times, John Silvia, chief economist for Wells Fargo Securities, stated that the city has the "right formula" for economic growth.
However, because technology employees tend to have fairly high salaries, the hiring boom has also meant that rental rates have skyrocketed in recent years. The problem, the Examiner notes, is that middle- and low-income families are now being driven out of the city to find housing. In an interview with the Examiner, Silvia noted that San Franciscan homeowners may face raised rents for the next two to three years.
San Francisco mayor Ed Lee is looking to partially solve the problem by setting aside city funding for affordable housing, the Examiner notes. However, until that occurs, property managers in the area will have the chance to enjoy a high volume of rental applications and high rental rates.