San Francisco’s population is growing rapidly, but we haven’t built nearly enough new housing to keep pace with our City’s growing popularity. The result is predictable to anyone with a basic grasp of supply and demand: Renting a place to live in San Francisco has become nose-bleedingly expensive.
But what about Bernal Heights? For insight on our hyperlocal rental market, the data geeks at Zillow offered to crunch some numbers for us. Bottom line: The rent is too damn high! Median rents in Bernal are even higher than in San Francisco overall, having climbed by 24% in the last year alone. Oof. Zillow’s Tali Wee sent us this summary:
Renting in Bernal Heights is more expensive than the median rent in the San Francisco metro. Currently, the median rent price per month in Bernal Heights is $4,326. For comparison, San Francisco rents are still steep at $3,088, but significantly less than Bernal Heights.
These local prices increased 2.1 percent since last month alone and a whopping 23.6 percent in the last year. If you’re a renter in Bernal Heights, you’ve likely experienced major hikes in your rent throughout the past few years. If you’re looking for a rental in Bernal Heights, anticipate prices to remain expensive throughout the year.
Also in Bernal Heights, home values appreciated 13.8 percent since last year. If renters are planning to buy, it’s becoming more and more difficult to save a down payment because rents are so expensive. Plus, purchasing a home becomes out of reach as values appreciate and prices rise; the median home value in Bernal Heights is $1,127,500. These values are forecasted to grow another 5.1 percent throughout 2015.
Right now, renters pay about $3.25 per square foot, about three times the national rate ($1.10). Across the country, renters are applying an average of 30 percent of their monthly incomes on rent, and an astronomical 44 percent in San Francisco.
Renters thinking about buying in Bernal Heights can breakeven on the upfront costs in approximately 1.3 years. Zillow’s breakeven horizon shows the length of time it would take for the costs of renting to exceed the total costs of buying the same property. So, renters who adore the Bernal Heights community and who plan to stay longer than 1.3 years are financially better off buying then renting – especially as home values appreciate, which increases returns on their investments.