Rents are falling in many of the most expensive cities in the U.S. A recent study found that the average incentive offered in Manhattan was two months of free rent in an attempt to fill empty apartments. As people continue to work from home, many renters have moved to more affordable or remote areas to lower costs or improve their lifestyles.
Change in average rent around the U.S. from one year ago:
- Rent in San Francisco, California, is down 31%.
- Rent in New York City, New York, is down 15.4%.
- Rent in Honolulu, Hawaii, is down 14.9%.
- Rent in Tulsa, Oklahoma, is up 36%.
- Rent in Hillsborough County, Florida, is up 28.4%.
Rental rates are falling fastest in cities where technology jobs are most prominent. Companies including Google, Airbnb, Facebook, Slack, Twitter, and Facebook have all announced long-term remote work policies. These policies are not just temporary; companies like Okta have seen many foreign workers move to Canada or other countries as the U.S. government limits visa renewals. The investment in remote work infrastructure likely means many of these jobs will remain remote.
Meanwhile, rent in traditionally affordable cities has increased as individuals take advantage of remote work to move to communities that provide the opportunity for additional space, activities, and homeownership.