Let’s talk AirBnB, rising rents and today’s market
If you have been leasing out rooms or sometimes your entire home on AirBnB, you may already be aware of new City ordinances designed to curtail the practice. The biggest change is the limitation on number of days you can rent your place out. There are also new layers of paperwork and costs. You can learn more here at the SF Planning Department.
Some buyers have kept the AirBnB model in mind to help defray the costs of ownership. Renting short-term has also been a boon to those who own small pied-a-terres that are rarely used. We’ve also used the idea as a marketing tool for listings with rooms down or small apartments attached. All these practices need to now be scrutinized as the the business of short-term rentals can no longer be relied upon for a consistent and healthy income stream.
And Now for Some Graphics. . .
The accompanying chart helps explain some of the “hows and whys” of our currently unbalanced market. It jumped out at me because it shows how the rest of the Bay Area is catching up to us in terms of rising rents. We love to chatter about how outrageous San Francisco rentals are, but this graph that Oakland may be catching up as “San Francisco-adjacent” communities draw in those who can no longer afford the City.
Another note: the spur in housing production after WWII was mostly single family homes in neighborhoods like the Sunset and Midtown Terrace. Since 1980, the units built have generally been condos and apartments, which makes sense with our changing demographics – more singles and couples, fewer families. Our constricting land supply has also forced developers to go “up” instead of “out.”
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners– and feeds the dreams of those who wish they could live in Tony Bennett’s ‘City by the Bay.’ Call 415-577-0809 or email firstname.lastname@example.org. www.ceceblase.com