The following reflects Bay Area multifamily market conditions as of Q3 2026.
The Bay Area multifamily market in Q3 2026 experienced decreasing vacancy and unemployment, rising rental rates, and fewer construction deliveries year over year. Explore our full Bay Area multifamily market report for deeper insights into rents, sale activity, and new construction.
Frequently Asked Questions
What is the Bay Area multifamily vacancy rate in Q3 2026?
The Bay Area multifamily vacancy rate was 3.8% in Q3 2026, according to Kidder Mathews research. That is down from 4.0% in Q2 2026 and 4.8% in Q3 2025, a year-over-year decline of 100 basis points. (Data source: CoStar)
What is the average asking rent for Bay Area apartments in Q3 2026?
The average asking rent in the Bay Area multifamily market was $2,910 per unit per month in Q3 2026, up 7.7% year over year, according to Kidder Mathews research. Asking rents were $2,864 in Q2 2026 and $2,701 in Q3 2025. (Data source: CoStar)
What are average Bay Area apartment rents by unit type in Q3 2026?
Average monthly rents in the Bay Area multifamily market in Q3 2026 were $2,282 for a studio, $2,656 for a 1-bedroom, $3,250 for a 2-bedroom, and $3,530 for a 3-bedroom, according to Kidder Mathews research. (Data source: CoStar)
What was Bay Area multifamily net absorption in Q3 2026?
The Bay Area multifamily market recorded net absorption of 2,428 units in Q3 2026, according to Kidder Mathews research. Net absorption measures the net change in occupied units, so a positive figure means more units were occupied than vacated. Year-to-date 2026 net absorption totaled 10,246 units compared with 11,622 units in 2025 YTD, a decrease of 11.8%. (Data source: CoStar)
How many new apartment units were delivered in the Bay Area in Q3 2026?
Bay Area multifamily construction deliveries totaled 476 units in Q3 2026, according to Kidder Mathews research. Deliveries reached 3,396 units in 2026 YTD compared with 9,579 units in 2025 YTD, a year-over-year change of -62.9%. (Data source: CoStar)
How many multifamily units are under construction in the Bay Area in Q3 2026?
There were 19,156 multifamily units under construction in the Bay Area in Q3 2026, up 28.0% from 14,964 units in Q3 2025 and up from 18,753 units in Q2 2026, according to Kidder Mathews research. The largest project is Coyote Creek Village in Outer North San Jose with 1,140 units, owned by the City of San Jose and expected to deliver in 3Q 2027. El Paseo de Saratoga in Castro (772 units, Sand Hill Property Company, 2Q 2029) and Lake Merritt BART in Chinatown (557 units, Strada Investment Group, 4Q 2028) follow. (Data source: CoStar)
What is the average sale price per unit for Bay Area multifamily in Q3 2026?
The average sale price in the Bay Area multifamily market was $387,409 per unit in Q3 2026, up 11.6% from $347,162 in Q3 2025, according to Kidder Mathews research. The average was $332,057 per unit in Q2 2026. (Data source: CoStar)
What is the average cap rate for Bay Area multifamily properties in Q3 2026?
The average cap rate for Bay Area multifamily properties was 5.9% in Q3 2026, according to Kidder Mathews research. That compares with 5.8% in Q2 2026 and 5.5% in Q3 2025, a year-over-year increase of 40 basis points. (Data source: CoStar)
What was the largest Bay Area multifamily sale in Q3 2026?
The largest Bay Area multifamily sale in Q3 2026 was Lynhaven, a 636-unit property in Hamann Park that sold for $346,500,000, or $544,811 per unit, according to Kidder Mathews research. Kohlberg Kravis Roberts & Co. was the buyer and Greystar Real Estate Ptnrs. was the seller. The highest price per unit among significant sales was The Village Residences in Outer Mountain View/Los Altos, a 331-unit property that sold for $273,404,370, or $825,995 per unit, to Property Reserve. (Data source: CoStar)
Which Bay Area multifamily projects were completed in Q3 2026?
Significant Bay Area multifamily completions in Q3 2026 included Sagecrest in Pittsburg/Antioch (216 units, September 2026), La Vista Apartments in Mission-Garin (176 units, July 2026), and Stevens Creek in Loma Linda (173 units, September 2026), according to Kidder Mathews research. Belmont Family Apts in Belmont (125 units, September 2026) and The Montecito in Outer Mountain View/Los Altos (85 units, August 2026) were also completed. (Data source: CoStar)
What is the outlook for the Bay Area multifamily market after Q3 2026?
Q3 2026 indicators show a tighter Bay Area multifamily market, with vacancy at 3.8%, asking rents up 7.7% year over year, and net absorption of 2,428 units for the quarter, according to Kidder Mathews research. The pipeline is growing, with 19,156 units under construction (up 28.0% year over year), while 2026 YTD deliveries of 3,396 units trail 2025 YTD. The average cap rate rose 40 basis points year over year to 5.9%. This quarterly report does not include a formal forecast. (Data source: CoStar)
Last updated: Q3 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.
Q3 2026 Bay Area Multifamily Market: Key Data Points
Explore our full Bay Area multifamily market review for deeper insights into rents, sale activity, and new construction.
- Vacancy Rate: Vacancy was 3.8% in Q3 2026, down from 4.0% in Q2 2026 and 4.8% in Q3 2025, a decline of 100 basis points year over year.
- Average Asking Rent: Asking rents averaged $2,910 per unit per month, up 7.7% year over year from $2,701 in Q3 2025.
- Net Absorption: The market absorbed 2,428 units in the quarter and 10,246 units in 2026 YTD, compared with 11,622 units in 2025 YTD (-11.8%).
- Construction Pipeline: 19,156 units were under construction, up 28.0% year over year, while Q3 2026 deliveries totaled 476 units and 2026 YTD deliveries totaled 3,396 units.
- Sale Price and Cap Rate: The average sale price reached $387,409 per unit, up 11.6% year over year, and the average cap rate was 5.9%, up 40 basis points year over year.
- Largest Sale: Lynhaven in Hamann Park (636 units) sold for $346,500,000, or $544,811 per unit, with Kohlberg Kravis Roberts & Co. as buyer.
Average Rent by Unit Type
| Unit Size | Monthly Rent |
|---|---|
| Studio | $2,282 |
| 1 Bedroom | $2,656 |
| 2 Bedroom | $3,250 |
| 3 Bedroom | $3,530 |
Significant Sale Transactions Q3 2026
| Property | Submarket | Units | Sale Price | Price/Unit | Buyer | Seller |
|---|---|---|---|---|---|---|
| Lynhaven | Hamann Park | 636 | $346,500,000 | $544,811 | Kohlberg Kravis Roberts & Co. | Greystar Real Estate Ptnrs. |
| The Village Residences | Outer Mountain View/Los Altos | 331 | $273,404,370 | $825,995 | Property Reserve | BGRE |
| Bell Diridon | Garden Alameda | 250 | $140,000,000 | $560,000 | Bell Partners | Vivmark Residential |
| Alta Potrero | Potrero | 172 | $132,000,000 | $767,442 | Stockbridge Capital Group, LLC | Wood Partners | PGIM |
| Bell South City | Downtown South San Francisco | 195 | $130,000,000 | $666,667 | Bell Partners | Sares-Regis Group |
Significant Under Construction
| Property | Address | Submarket | Units | Owner | Expected Delivery Date |
|---|---|---|---|---|---|
| Coyote Creek Village | 681 County Highway G4 | Outer North San Jose | 1,140 | City of San Jose | 3Q 2027 |
| El Paseo de Saratoga | 1777 Saratoga Ave | Castro | 772 | Sand Hill Property Company | 2Q 2029 |
| Lake Merritt BART | 8th & Oak St | Chinatown | 557 | Strada Investment Group | 4Q 2028 |
| 7 S Linden Ave | 7 S Linden Ave | Lindenville | 543 | Essex Property Trust | 4Q 2026 |
| The Colton | 1515 Broadway St | Stambaugh-Heller | 520 | The Sobrato Organization | 4Q 2026 |
Significant Completed Construction Q3 2026
| Property | Address | Submarket | Units | Owner | Delivery |
|---|---|---|---|---|---|
| Sagecrest | 6001 Country Hills Dr | Pittsburg/Antioch | 216 | Brightsky Residential | September 2026 |
| La Vista Apartments | 722 W Tennyson Rd | Mission-Garin | 176 | The Pacific Companies | July 2026 |
| Stevens Creek | 4300 Stevens Creek Blvd | Loma Linda | 173 | Miramar Capital | September 2026 |
| Belmont Family Apts | 803 Belmont Ave | Belmont | 125 | Belmont Family Apts., LP | September 2026 |
| The Montecito | 1265 Montecito Ave | Outer Mountain View/Los Altos | 85 | Charities Housing | August 2026 |
Data as of Q3 2026. Source: CoStar. Prepared by the Kidder Mathews Research Group.
ContactGARY BARAGONA |
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