San Francisco Multifamily Market Report

Job growth spurs absorption. The local economy has remained resilient, despite recent headlines of layoffs and hiring freezes from notable tech firms headquartered in the Bay Area. This fortitude is driving the recovery of San Francisco’s apartment sector. The addition of nearly 40,000 new positions over the past year ending in March lowered unemployment to 2.7 percent, 80 basis points below the national average. This steady rate of job creation is underpinning renter demand. Entering April, trailing 12-month absorption outpaced the long-term average, contributing to declining vacancy. Life sciences and industrial employment opportunities are stimulating leasing activity in locales like South San Francisco-San Bruno-Millbrae, San Mateo-Burlingame and Foster City-Redwood Shores. Meanwhile, the presence of notable tech firms, including Google and Meta, is stoking renter demand in Redwood City-Menlo Park.