San Francisco Multi-Unit Market Update | Q3 2023
SAN FRANCISCO MARKET UPDATE | Q3 2023
It is clear that the multifamily housing market has witnessed a substantial decline across various key metrics since its height in 2021. During the third quarter, the median sales price for two-to-four unit buildings saw a notable reduction of 13.1 percent, while five-plus unit buildings experienced a 23.8 percent decrease when compared to the same period last year.
Despite these statistics, the prevailing sentiment in the market is one of enthusiasm. Many prospective buyers are capitalizing on the present landscape and securing deals that haven’t been available for years. However, despite this promising outlook for buyers, the market continues to face challenges in the form of rising interest rates and limited inventory.
According to Zillow, rental rates have been on a downward trend since spring, with the median rent now standing at $3,495 per month
San Francisco Multi-Unit Market Update | Q3 2023
During the third quarter, the median sales price for two-to-four unit buildings saw a notable reduction of 13.1 percent, while five-plus unit buildings experienced a 23.8 percent decrease when compared to the same period last year. Despite these statistics, the prevailing sentiment in the market is one of enthusiasm. Many prospective buyers are capitalizing on the present landscape and securing deals that haven’t been available for years.
San Francisco Multi-Unit Market Update | Q2 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.
San Francisco Multi-Unit 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.
San Francisco Multi-Unit Market Update | Q4 2022
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.
San Francisco Multi-Unit Market Update | Q3 2022
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.’
San Francisco Multi-Unit Market Update | Q2 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.
San Francisco Multi-Unit Market Update | Q4 2020
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.
San Francisco Multi-Unit Market Update | Q3 2020
The multifamily market has been a mixed bag since the start of the pandemic. With working remotely now the new normal, vacancy rates have surged, and rents re-main greatly diminished. Building inventory is up while sales numbers are down. In the 2-4 unit market, the median sale price, price per square foot, and price per unit all remain relatively comparable to last year. In the 5+ unit sector, there were only 20 sales last quarter.
San Francisco Multi-Unit Market Update | Q2 2020
With the effects of the global COVID-19 pandemic putting a strain on our daily lives, economy, and policies, multi-unit buildings, and San Francisco rents, in general, were hit exceptionally hard. Sales dropped significantly following the March shelter-in-place order and ensuing mass unemployment. Despite this, June did see an increase in inventory, sales, and median sale price.
San Francisco 2019 Year-End Report: 2-4 Unit Market
Accurately priced properties are currently selling quickly, with more than 50% of listings being sold within the first 30 days of being on the market. Over half of buildings listed sold over asking with purchasers paying a combined average of 4.3% over list price.
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