San Francisco’s formidable economy is attracting and retaining talent despite the limited housing supply and a shortage of affordable properties. While rent growth moderated throughout the year, it rose 2.4 percent year-over-year through October, 80 basis points below the national average. Standing at $2,738, the average rent was nearly double the national figure. California’s new rent control bill will take effect in January 2020.
San Francisco gained 67,400 jobs in the 12 months ending in September, pushing the unemployment rate down to 2.2 percent as of September, 90 basis points below January’s figure. Professional and business services (21,700 jobs) and education and health services (16,100 jobs), the metro’s main economic pillars, continued to lead growth. Despite a shortage of workers for these sectors due to high housing costs, technology companies have continued to scout for new hires and even pledged more than $4.5 billion toward affordable housing in the Bay City. While many operators in the financial activities sector (4,700 jobs) have reduced their local workforces, Visa is expanding with a 13-story office tower planned at the Giants’ Mission Rock waterfront project.
In 2019 through October, more than $2.8 billion in multifamily apartments traded at an average price per unit of $452,344. During the same period, 3,932 units came online, already surpassing last year’s total deliveries.