San Francisco has surpassed New York City as the most expensive U.S. market for two-bedroom apartment rentals, driven by an influx of hiring in the artificial intelligence sector and a drop in available housing inventory.
The median monthly rent for a two-bedroom unit in San Francisco rose 5.6 percent month-over-month to $6,020, according to data published by real estate platform Zumper. That figure reflects a 25.9 percent increase compared to the previous year and marks the first time two-bedroom rents in the city have crossed the $6,000 threshold in more than a decade of tracking by the firm.
By comparison, New York City recorded a median two-bedroom rent of $5,450 per month, putting San Francisco $570 higher. New York retained the top spot for one-bedroom rentals at $4,560 per month, while San Francisco ranked second at $4,180 — a 22.9 percent gain year-over-year.
Analysts at Zumper attributed the price growth in San Francisco to a combination of expanding tech industry employment and a nearly static construction pipeline for new residential units.
Active rental listings in the city decreased by roughly 30 percent year-over-year, as elevated costs prompted existing tenants to stay in place rather than seek new housing.
The upward pressure on rents extended to adjacent Bay Area markets, though at lower overall cost levels. In San Jose, median monthly rents reached $2,770 for a one-bedroom apartment and $3,590 for a two-bedroom. Oakland saw median rents rise to $2,090 for a one-bedroom and $2,640 for a two-bedroom.
On a national level, the rental market was far flatter. The U.S. median rent for a two-bedroom unit rose 0.1 percent annually to $1,906, representing its first year-over-year increase since June 2025. One-bedroom rents remained unchanged annually at $1,520 per month.
Zumper Chief Executive Shawn Mullahy stated in the report that national figures showed a shift as post-pandemic construction slowed down.
“What the national figures hide, though, is that there really isn’t an average housing market right now,” Mullahy said. “Supply remains the defining force, but it’s landing very differently from market to market. Where new supply is being absorbed, rents are beginning to firm. Where inventory is still building, renters continue to hold the leverage.”
