1979 to 2015 — Average rent in San Francisco

  • The dot com bubble and recent rise up in technology companies had a much bigger effect in SF rental prices vs. the housing crash in 2008–2009.
  • Rental rates are well past the 1999–2001 highs. I wonder how much the next big correction will bring prices down.
  • San Francisco (on average) is prohibitively expensive at this point. Even making $100K per year would make living difficult in San Francisco, especially with a family. I can start to appreciate why people are upset.
  • In this chart you can clearly see the upwards trend leading up towards the first dot com crash, price stabilization and fall during the housing crash, and the recent sharp rise upwards with our newest startup funding environment.
  • Purely looking at rental rates in SF, it looks like we are in a bubble with a much sharper increase vs. the dot com days. (when looking at just rental rates).
  • The one big difference is this recent run up happened right after the lows of 2008–2009 vs. the dot com era was more of a gradual increase over 20 years.

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Partner @RaceCapital, former community lead at Greylock Partners, founder of StartupDigest

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Chris McCann

Chris McCann

Partner @RaceCapital, former community lead at Greylock Partners, founder of StartupDigest