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Rent prices are falling the most in these ten cities

Yahoo Finance’s Sarah Paynter joins Zack Guzman to discuss a new report from Realtor.com highlighting the cities where rent prices are plunging the most.

Video Transcript

ZACK GUZMAN: We want to talk about the other issue here in the pandemic as well. We've seen rents come in here under pressure. It's a similar story playing out here in New York in the pandemic, but also across the country.

And here to chat that with us in terms of which cities are seeing the most pressure there, I want to bring on Yahoo Finance's Sarah Paynter, who has the details. Sarah. And I think you might be on mute. We might just need to unmute Sarah Paynter here real quick.

SARAH PAYNTER: Thanks. Thanks, Zack. Yeah, cities across the country are seeing rent prices go down. So New York, Pittsburgh, Boston, Seattle, Honolulu, all of these places are decreasing in asking rent prices.

But where we're seeing it the most is in the San Francisco area. So San Francisco, San Mateo, Santa Clara, and Alameda are all rents dropping between up to 31% for studios in San Francisco, and studios tend to have the most volatility.

So that is a huge price decrease. And the reason we're seeing so much in that area is because it is so reliant on tech talent. And in the San Francisco area, most offices are allowing workers to go completely remote and giving them notice, like Microsoft did recently, that that's going to be more of a long term option for them.

So a lot of people are leaving the San Francisco area, which is very expensive, for something more affordable, knowing that they're not going to have to go into the office anytime soon. And that's creating a lot of vacancies and causing landlords to drop their prices very significantly.

ZACK GUZMAN: Yeah, you mentioned Microsoft. We have seen that from Dropbox. We've seen a few other announcements here from Twitter and Square. I mean, there's a lot of companies out there weighing a permanent move to working from home. And clearly, as your numbers show there, San Francisco seeing a big drop in rent prices. But Sarah Paynter, appreciate you bringing us that.