San Francisco
real estate news

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.

The multi-family segment of the market continued to rebound during the second quarter with the waning of the pandemic. Sales numbers are up considerably across both 2-4 unit buildings and 5+.

One year after the pandemic brought the market to a crawl, lowered median sale prices, and significantly reduced rents, sales numbers in the multi-unit market have rebounded in Q1 and rents appear to be on their way back up as well.

The pandemic, shelter in place, working from home, soaring unemployment, migrations, rent plunges, increased restrictions on evictions, record-low mortgage rates seemingly every week, and a multitude of other factors made for an exceptionally tumultuous year for the multifamily market. Though activity did pick up in Q4.