SAN FRANCISCO MARKET UPDATE | Q1 2023

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. 

Despite these figures, the current real estate market sentiment is vastly different from what it was just a couple of months ago. Many buyers are taking advantage of the current landscape and securing deals that haven’t been seen in years. However, while the current situation seems promising for buyers, fluctuating interest rates and limited inventory continue to be significant barriers in the market. 

On a more positive note, rental rates in San Francisco have continued to moderately improve. Zumper.com reported an average annual gain of 3 percent.