San Francisco Multifamily Market Report
San Francisco Apartment Market Improves;
Future Gains Will Be More Difficult
Late reopening drives recent apartment gains. Many of the big tech companies have asked workers to return to offices, though mandates are less widespread relative to Silicon Valley. Multifamily fundamentals improved faster than most expectations during the first half of the year, bringing the number of occupied units to within 1,500 apartments of the pre-pandemic level. The initial stages of the recovery were always going to be less challenging en route to the tight apartment market that existed prior to the recession. Gains should persist, but consistent new construction will generate pockets of weakness. More than half of the units underway are in SoMa, encouraging some operators to remain aggressive with concessions until apartment vacancy declines further.