SAN FRANCISCO, CA – San Francisco renters had to work overtime in 2017 just to earn enough money to cover rent, according to a new analysis from HotPads. This doesn’t include time spent working to pay for other living expenses, like food and transportation.

In 2017, there were 260 workdays, but the typical San Francisco renter earning the median income had to work 265 days in order to have enough money to pay rent this year. The median annual income in San Francisco is $51,780, while the median monthly rent is $4,398 per month, or $52,770 per year. This means San Francisco renters are putting more money toward rent than they make in an entire year. Nationally, 13 percent of renters report living with roommates to offset these high costs.

The trend is more pronounced for San Francisco renters making less than the city’s median income. For example, retail salespeople and baristas would have to work over 500 days per year in order to afford the median rental in San Francisco, and teachers would have to work 354 days. Software developers, on the other hand, work less than half the average time — just 112 days — to earn enough to pay rent for the year.

“There’s only so many hours in a year, and unfortunately, a lot of San Francisco renters are spending all of them working so they can afford to live in the city,” said Douglas Pope, co-founder and general manager of HotPads. “By dedicating so much of their income to rent, renters don’t have much room to afford other living expenses, let alone save for a rainy day. Renters looking for more affordable rents may need to migrate further away from the center of the city or consider doubling up with roommates or family.”

Financial experts recommend renters dedicate at most one-third of their monthly income toward a rental payment, but even renters who are comfortable spending half their paycheck on rent still have few options within the city.

Graphic designers who place half their paycheck (median annual income of $65,210) toward the median rent can afford to live alone in just three San Francisco neighborhoods: the Outer Mission, Downtown, and the Tenderloin. San Francisco’s software developers, but, can afford to live solo and pay the median rent in all but three neighborhoods — Sea Cliff, Corona Heights and Miraloma Park — if they place half their paycheck toward rent.

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CHANDLER, AZ – Marcus & Millichap announced its Institutional Property Advisors (IPA) division closed the sale of Pinnacle Terrace, a 300-unit multifamily community in Chandler, Arizona. The $56 million sales price represents $186,667 per unit.

“Strong economic fundamentals in Chandler’s largest employment hub, the Price Corridor, which accounts for nearly one-third of the city’s total employment base, are making operational momentum for the submarket’s multifamily assets,” says Steve Gebing, senior managing director. “Pinnacle Terrace’s new owners are in an brilliant position to increase revenue by complimenting recent enhancements to the leasing office, clubhouse, and fitness center with strategic interior upgrades.”

Gebing, and Cliff David, senior managing director, represented the seller, TA Realty, and procured the buyer, an institutional investment manager.

Completed in 1998 on just under two acres, Pinnacle Terrace, a gated community, is located at 801 North Federal St. in Chandler. The West Chandler Corridor, Arizona State University Research Park, and the Discovery Business Campus are within two miles. The Chandler Fashion Center, a 1.3-million-square-foot super-regional mall is one mile south of the property.

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AUSTIN, TX – Amherst Holdings  announced that its Single Family Residential platform has completed the acquisition of 671 single family rental properties from Broadtree Residential, a private real estate investment trust managed by Broadstone Real Estate, for approximately $78.3 million. The bought properties are located primarily in the Atlanta and southeast Florida markets.

“With the size, flexibility and attractive cost of capital associated with our platform, we are uniquely positioned to expand our portfolio of single family rental properties across many of the largest markets in the U.S.,” said Drew Flahive, President of Amherst Single Family Residential. “Single family rental properties continue to demonstrate strong performance, and we are excited to buy this portfolio from Broadtree.”

Including the properties bought in this transaction, the Amherst Single Family Residential platform has bought more than 6,000 single family rental properties in 2017 as part of the company’s strategy to invest institutional capital in target markets across the United States. Through subsidiary Main Street Renewal, LLC, a vertically-integrated property acquisition, repair, and management business, the Amherst Single Family Residential platform currently manages more than 17,000 single family rental properties in 18 states across the U.S. 

“This acquisition further enhances our scale in markets where we see significant value, particularly Atlanta and Miami,” said Keith Ramsden, Chief Investment Officer of Amherst Single Family Residential. “We continue to invest significant capital into this asset class and see tremendous value in executing portfolio acquisitions that grow our footprint in key markets and facilitate expansion into areas of high growth. Our partnerships with single family owners and operators are instrumental in the execution of this strategy, and we are actively seeking acquisition opportunities of all sizes in the coming quarters.”

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