SAN FRANCISCO MARKET UPDATE | Q1 2022
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.
Rising mortgage rates have stimulated a correction in the entry level residential segment while the luxury segment ($3M+) has been more affected by volatility in the stock market. Rental rates in San Francisco have continued to rebound as a result with Zumper recording an average rent of$2,600 per month on May 1st for a 1-bedroom, and increasing to $3,095 on July 23rd; a significant increase of 19 percent.
Sales numbers are expected to remain steady though relatively reduced during summer with an increase in activity during autumn before the holiday slowdown in winter.