Bay Area renters are facing a tighter market even as tenants gained negotiating power in most U.S. rental markets, according to Zumper’s 2026 Renter Leverage Index, published Oct. 7. San Francisco ranked 43rd out of 44 cities, and its grade fell from a C to an F. San Jose placed 40th, with its grade slipping from a C to a D. The index measures how much leverage renters have when negotiating with landlords. Zumper said the local trend runs counter to the national picture, where renters gained leverage in a majority of markets. The rental marketplace suggested that the economic boom linked to the expanding artificial intelligence industry could be contributing to a shortage of available rentals in the South Bay. The findings point to mounting pressure for people searching for housing in the region, where fewer options can leave renters with less room to negotiate. The report did not provide specific local rent figures or quantify the change in available listings.