Bay Area Multifamily Market Report

The San Francisco multifamily market in 2Q 2026 continued to strengthen as vacancy rates declined and rental growth accelerated. Strong tenant demand supported positive absorption, while construction deliveries slowed significantly despite an expanding development pipeline. Explore our full San Francisco multifamily market review for in-depth analysis and trends.

Frequently Asked Questions

What is the current multifamily vacancy rate in San Francisco for 2Q 2026?

The San Francisco multifamily vacancy rate was 4.0% in 2Q 2026, according to Kidder Mathews research. This represents a decline from 4.4% in 1Q 2026 and a 110 basis point decrease from 5.1% in 2Q 2025. The steady decline reflects tightening conditions across the market.

What are average asking rents by unit type in the San Francisco multifamily market?

Average asking rents across all unit types reached $2,843 per unit per month in 2Q 2026, up 5.8% year-over-year (Data source: CoStar). By unit size, average monthly rents were $2,216 for studios, $2,592 for one-bedroom units, $3,198 for two-bedroom units, and $3,457 for three-bedroom units. Rental growth accelerated alongside declining vacancy.

How much net absorption did the San Francisco multifamily market see in 2Q 2026?

Net absorption reached 8,094 units year-to-date through 2Q 2026, according to Kidder Mathews research. That marks a 22.9% decline from the 10,503 units absorbed over the same period in 2025. Net absorption measures the change in occupied space, so a positive figure indicates tenants are filling more units than they are vacating, even though the pace slowed compared to a year ago.

What is the construction pipeline for San Francisco multifamily as of 2Q 2026?

Units under construction reached 18,460 in 2Q 2026, a 43.9% increase from 12,829 one year earlier (Data source: CoStar). The expanding pipeline suggests developers continue to bring new supply to market despite slower recent deliveries.

How many multifamily units were delivered in San Francisco during 2Q 2026?

Construction deliveries totaled 632 units in 2Q 2026 and 2,400 units year-to-date, according to Kidder Mathews research. That is down 70.8% from the 8,223 units delivered over the same period in 2025. Notable projects completed during the quarter include Lark Landing in Transbay, which delivered 184 units in April 2026.

What was the largest multifamily sale transaction in San Francisco in 2Q 2026?

The largest sale transaction was Meridian at Midtown Apts in Buena Vista, a 218-unit property that sold for $105,250,000, or $482,798 per unit, according to Kidder Mathews research. Holland Partner Group purchased the asset from Essex Property Trust. Other significant sales included Almaden Terrace in Almaden-Clare Felice, which traded for $87,700,000.

What is the average multifamily sale price per unit and cap rate in San Francisco?

The average multifamily sales price was $313,445 per unit in 2Q 2026, down 10.4% year-over-year, while the average cap rate compressed to 5.7% from 5.8% a year earlier (Data source: CoStar). Investment pricing moderated even as transaction activity continued across submarkets such as Pacific Heights and Outer Danville/San Ramon.

What is the largest multifamily project currently under construction in San Francisco?

Coyote Creek Village in Outer North San Jose is the largest project under construction, with 1,140 units expected to deliver in 3Q 2027 under developer City of San Jose, according to Kidder Mathews research. Other large projects underway include El Paseo de Saratoga in Castro with 772 units and Lake Merritt Bart in Chinatown with 557 units.

What is the outlook for the San Francisco multifamily market heading into the second half of 2026?

The San Francisco multifamily market is expected to continue tightening, with vacancy rates and rental growth trending in landlords’ favor, according to Kidder Mathews research. Construction deliveries are likely to remain below prior-year levels even as the development pipeline expands, which should support continued absorption of existing supply.

Last updated: 2Q 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.

2Q 2026 San Francisco Multifamily Market: Key Data Points

Explore our full San Francisco multifamily market review for in-depth analysis and trends.

• Vacancy Rate Declines: San Francisco multifamily vacancy fell to 4.0% in 2Q 2026, decreasing 110 basis points year-over-year.
• Rental Growth Accelerates: Average asking rents increased to $2,843 per month, up 5.8% year-over-year.
• Development Pipeline Expands: Units under construction reached 18,460, representing a 43.9% increase from one year ago.
• Construction Deliveries Slow Sharply: Multifamily deliveries totaled 2,400 units year-to-date, down 70.8% compared to the same period last year.
• Absorption Remains Strong: Net absorption reached 8,094 units year-to-date, reflecting continued demand despite a 22.9% decline from the prior year.
• Investment Pricing Moderates: Average sales price declined to $313,445 per unit, down 10.4% year-over-year, while average cap rates compressed slightly to 5.7%.

Average Rent by Unit Type

Significant Sale Transactions 2Q 2026

Significant Under Construction

Significant Completed Construction 2Q 2026