The San Francisco multifamily market in 1Q 2026 reflects softening fundamentals as vacancy edges up, asking rents trend downward, and both deliveries and net absorption decline sharply year-over-year. Despite these headwinds, average sale prices and cap rates show moderate stability, indicating selective investor confidence. Explore our full San Francisco multifamily market report for detailed trends and investment insights.
1Q 2026 San Francisco Bay Area Market: Key Data Points
- Vacancy Rate Ticks Higher: San Francisco’s vacancy rate rose to 5.3%, up from 4.7% one year earlier.
- Asking Rents Decline: Average asking rent decreased 3.0% year-over-year to $2,652 per unit per month.
- Construction Pipeline Expands: Units under construction increased to 15,651, though the year-over-year comparison reflects a 13% decline.
- Sales Pricing Softens: Average sales price per unit dropped to $323,825, down 18% year-over-year.
- Deliveries and Absorption Fall Sharply: Construction deliveries dropped 51% year-over-year, while net absorption fell 58%.
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