Friday, October 21, 2016

Scott Safadi on Dropping Rents in the Bay Area

Well, the time has finally come. Rental rates are finally dropping in the Bay Area, after over five years of continual, double digit growth. That type of growth was simply unsustainable. While many news outlets try to sensationalize this phenomenon as the bursting of a bubble, Scott Safadi, does not believe that this accurately represents what is taking place. Rents are finding their equilibrium. With job growth down to normal levels, we can expect the market to continue to adjust, most likely further down and then possibly a small rebound until things level off for a while. Our hyperbolic rental market is not good for anyone. It is Scott Safadi's hope that we will find that equilibrium in the coming 12-24 months and that sustained job growth will keep rates steady for some time to come.


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