The Bay Area multifamily market in Q4 2025 shows vacancy rates holding steady while rental rates continue to rise modestly. Construction activity and sales prices have declined significantly, and cap rates have increased, signaling shifting investor sentiment. Explore our full Bay Area multifamily market review for detailed analysis and trends.
4Q 2025 San Francisco Bay Area Market: Key Data Points
- Vacancy Rate Holds Steady: Bay Area multifamily vacancy rate remained at 5.0%, down 50 basis points year-over-year.
- Average Asking Rent Climbs: Average asking rent reached $2,676 per month, a 3% increase year-over-year.
- Construction Pipeline Shrinks: Units under construction fell to 13,454, a 20% decrease from the previous year.
- Sales Price Declines Sharply: Average sales price per unit dropped to $323,825, down 18% year-over-year.
- Cap Rates Rise: Average cap rate increased to 6.0%, up 80 basis points year-over-year.
- Construction Deliveries Slow: Year-to-date deliveries totaled 10,899 units, a 28% decrease compared to 2024.
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