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Similar to the residential market, it’s evident that the multifamily market has seen a significant decline in most key metrics compared to the unprecedented demand spike that was experienced in late 2020 and early 2021. The first quarter recorded a 16.5 percent reduced median sales price for two-to-four unit buildings and a 12.1 percent reduction for five-plus unit buildings compared to the same time last year. 

Similar to the residential market, it’s evident that the multifamily market has seen a significant decline in most key metrics compared to the unprecedented demand spike that was experienced in late 2020 and early 2021. The first quarter recorded a 16.5 percent reduced median sales price for two-to-four unit buildings and a 12.1 percent reduction for five-plus unit buildings compared to the same time last year.

Similar to the residential market, the overall trend for multifamily buildings in San Francisco was one of less competition and declining sales in 2022. The economic headwinds that arose and strengthened throughout the year had significant impacts on supply and demand.

Similar to the overall residential market in San Francisco, the apartment building market recorded significant downtrends due to financial market uncertainty and volatility. On the brighter side, rental rates in San Francisco have continued to moderately improve. Rent. com reported that ‘For a studio apartment in San Francisco, CA, the average rent is $3,002. When it comes to 1-bedroom apartments, the average rent in San Francisco, CA, is $3,571. For a 2-bedroom apartment, the average rent is $4,720. The average rent for a 3-bedroom apartment in San Francisco, CA, is $5,862.’

With half of the year now behind us and another quarter of 2022 data available, we can see the multifamily market showings signs of increased demand leading to growth in the sector. It is important to keep in mind that this report uses data from closed sales which are lagging indicators of what occurred in the market weeks and months earlier.

With Q1 now behind us and three months of activity recorded, steady growth in key metrics are emerging for the multi-family segment. Sales numbers of 2-4 unit apartment buildings are up 13.4 percent compared to Q1 of last year.

The multifamily segment of the market rebounded in 2021. Sales numbers of 2-4 unit apartment buildings are comparable to the height of the 2014 peak.

There was substantial growth among key metrics for the multi-unit segment of the market last quarter. Both 2-4 unit and 5+ unit buildings recorded higher numbers than last year for median sale price, price per square foot, and price per unit.