San Francisco Multifamily Market Report

Post-pandemic recovery continues, benefiting fundamentals. Of the five major markets that recorded vacancy drops over the year ended in March, San Francisco led the way with a 70-basis-point reduction. That momentum is expected to continue through year-end, a feat that will only be shared with Chicago, Las Vegas, Salt Lake City and Reno. Whereas in many other metros elevated construction is challenging vacancy, deliveries are slowing down in San Francisco, allowing new renter demand from the increasing local population to bolster operations. While effective rents have yet to make the same upward progress as in other markets, momentum will continue to build, especially if labor dynamics improve.