The San Francisco Bay Area multifamily market in Q3 2025 reflects a tightening vacancy rate and rising rental prices, while construction activity continues to slow. Sales prices per unit are climbing, and net absorption has outpaced new deliveries. Explore our full Bay Area multifamily market report for detailed insights and trends.
3Q 2025 San Francisco Bay Area Market: Key Data Points
- Vacancy Rate Declines: The multifamily vacancy rate dropped to 4.9%, down 60 basis points year-over-year.
- Average Asking Rents Rise: Asking rents reached $2,692 per month, marking a 3% increase from Q3 2024.
- Construction Pipeline Contracts: Units under construction fell to 13,353, a 35% decrease year-over-year.
- Sales Price Per Unit Increases: The average sales price per unit rose to $331,129, up 6% year-over-year.
- Net Absorption Surpasses Deliveries: Net absorption totaled 13,667 units YTD, a 24% increase, while construction deliveries declined 9% to 9,316 units.
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