Q4 2025 San Francisco 2–4 Unit Market Update

San Francisco’s 2–4 unit apartment building market showed clear signs of renewed momentum heading into 2026. Sales activity increased meaningfully in late 2025, with Q4 recording the highest quarterly sales volume since mid-2022. Buyer demand strengthened as well, reflected by a notable rise in absorption, signaling improved confidence among investors and owner-occupants alike.

Pricing trends also moved in a positive direction. Median sale prices and average price per square foot both increased year-over-year, while rents continued to climb, approaching pre-pandemic levels. Combined with easing interest rates compared to recent highs, these factors point to a more favorable environment for well-located, well-maintained 2–4 unit properties as we move further into 2026.

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