Bay Area Rents Surge as Exodus Cities See Declines
For residents in the San Francisco Bay Area, including the San Jose metro, the housing market continues its upward climb. While many “exodus” cities that boomed during the pandemic are now experiencing significant rent drops, our local metros are seeing prices not just recover, but often surpass pre-pandemic levels. This shifting landscape presents a contrasting reality for renters across the nation.
The Shifting Rental Landscape Post-Pandemic
The COVID-19 pandemic triggered significant shifts in rental markets. Many Bay Area residents migrated to more affordable areas, particularly in the Sun Belt, leading to rent surges in cities like Las Vegas and Austin, while San Francisco experienced a period of decline. However, a new report from Realtor.com for August 2025 reveals a dramatic reversal of these trends, especially impacting current and prospective renters in our region.
Rents Plummet in Former Exodus Hotspots
Cities that saw rapid rent growth during the pandemic, fueled by an influx of remote workers and those seeking warmer climates, are now experiencing considerable declines. This correction is largely due to slowing nationwide migration and a significant increase in new multifamily housing supply.
- Las Vegas: Rental prices have tumbled a remarkable 13.6% from their peak in June 2022. The median asking rent in August 2025 was $1,443, representing a 4.6% decline in just the past year.
- Austin: Long a popular destination for tech workers leaving the Bay Area, Austin has seen its rents drop 13.4% since their September 2022 peak. With substantial new apartment construction, supply has outpaced demand, leading to a median asking rent of $1,436 in August 2025, down 6.5% year-over-year.
According to Jiayi Xu, an economist at Realtor.com, these cities saw “the largest rent declines from their peaks due to rapid rent growth during the pandemic… creating a high starting point for corrections.”
Bay Area’s Rental Market Resurgence
In stark contrast to these declining markets, San Francisco and the wider Bay Area are witnessing a robust rebound. After years of pandemic-era dips, rents are not only recovering but are now exceeding pre-pandemic levels.
The San Francisco metro’s median asking rent was $2,831 in August 2025, while the San Jose metro reached an eye-popping $3,413. San Francisco has once again become the most expensive city to rent in the Bay Area, a position it ceded during the pandemic. Experts attribute this resurgence to several factors:
- Renewed Urban Appeal: A growing desire for urban living has pushed San Francisco back into the lead as the region’s cultural and economic hub.
- AI Hiring Boom: The thriving tech sector, particularly with an “AI hiring boom,” is driving renewed demand for housing.
- Intense Demand: The overall intensity of demand in the region continues to outstrip available supply.
Crystal Chen, a spokesperson for Zumper, noted that “The intensity of demand in San Francisco… has pushed the city back into the lead.” This upward trend is expected to continue.
Comparison of Median Asking Rents (August 2025)
To put these trends into perspective, here’s a glance at median asking rents in key metros:
| Metro Area | Median Asking Rent (August 2025) | Change from Peak (Since Pandemic) |
|---|---|---|
| San Jose, CA | $3,413 | N/A (rising) |
| San Francisco, CA | $2,831 | N/A (rising) |
| Las Vegas, NV | $1,443 | Down 13.6% from June 2022 peak |
| Austin, TX | $1,436 | Down 13.4% from Sept 2022 peak |
Frequently Asked Questions for Bay Area Renters
- Why are Bay Area rents rising when other cities are declining?
The Bay Area’s strong job market, particularly in tech with an “AI hiring boom,” combined with its status as a cultural and economic hub, drives intense demand. Limited housing supply exacerbates this, causing prices to climb even as other areas cool down. - Have Bay Area rents surpassed pre-pandemic levels?
Yes, reports indicate that San Francisco rents, in particular, have now surpassed their pre-pandemic peaks, with other Bay Area metros also seeing significant recovery and growth. - Which Bay Area city is currently the most expensive for renters?
San Francisco has regained its position as the most expensive city for renters in the Bay Area, with the San Jose metro following closely. - What should San Jose and Bay Area residents expect for rental prices in the near future?
Experts anticipate that Bay Area rental prices will likely continue their upward trajectory due to sustained demand and the region’s strong economic drivers.
As the rental market continues to evolve, Bay Area residents should remain informed about local trends and plan their housing decisions accordingly, understanding that our region operates on a distinct economic trajectory compared to many other parts of the country.
Bay Area Rents Surge Exodus Cities Decline
