Demand for apartments continues to cool in the region’s pricier submarkets

Beacon said the San Francisco area rental market “appears to be approaching the end of frenzied growth.” The firm expects multifamily permitting activity will fall by 18 to 24 percent in 2017, as compared to 2016, as “demand for apartments in the region’s pricier submarkets continues to cool.”

Beacon anticipates rising mortgage rates will keep San Francisco area single-family home price appreciation on track for more modest gains of 3 percent to 4.5 percent over the next year.

But in the East Bay, Beacon expects median single-family home prices will gain steam, with appreciation over the next year coming in at 5.6 percent to 6.2 percent.

Rental is cooling.

First of all, let’s think through all that. If permitting goes down and we are anything but oversupplied on rental housing how is that going to impact us owners really negatively? People have to live somewhere. The only thing that would scare me is layoffs and people moving away since no jobs. Other than that, we have the goods and there are still people in need and if anything interest rates are increasing so they couldn’t buy even more.


Not Worried Owner

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