San Francisco Bay Area multifamily delivered just 632 units in 2Q 2026, an 86.89% year-over-year decline, while the under-construction pipeline expanded to 18,460 units, underscoring limited new completions today but a sizable wave of future supply in the near term.
Key Takeaways
- Construction deliveries totaled just 632 units in 2Q 2026, an 86.89% decline from the 4,819 units delivered during the same quarter last year.
- Despite the slowdown in completions, development activity remains active. Units under construction increased 44% year over year to 18,460 units.
- San Francisco Bay Area apartment rents increased 5.77% year over year to $2,843 on average per month, while vacancy tightened to 4.0%, reflecting continued demand and limited new inventory.
- The disconnect between falling deliveries and rising construction activity suggests the market is facing delayed project completions rather than a lack of future supply.
- With nearly 18,500 units currently under construction, the timing of future deliveries will play a significant role in determining whether rent growth and tight vacancy persist.
San Francisco Bay Area Multifamily Snapshot — Q2 2026
| Metric | 2Q26 | 2Q25 | YoY Change |
|---|---|---|---|
| Construction Deliveries (Units) | 632 | 4,819 | -86.89% |
| Under Construction (Units) | 18,460 | 12,829 | 43.89% |
| Average Asking Rent/Unit/Mo | $2,843 | $2,688 | 5.77% |
Data as of Q2 2026. Source: Kidder Mathews Research. Prepared by the Kidder Mathews Research Group.
Frequently Asked Questions
How many multifamily units were delivered in the San Francisco Bay Area in Q2 2026?
The San Francisco Bay Area delivered just 632 multifamily units in Q2 2026, an 86.89% decline from the 4,819 units delivered in Q2 2025.
How many multifamily units are under construction in the San Francisco Bay Area?
Nearly 18,460 units were under construction in the San Francisco Bay Area as of Q2 2026, up from 12,829 units a year earlier.
How much did San Francisco Bay Area apartment rents increase year over year in Q2 2026?
San Francisco Bay Area apartment rents rose 5.77% year over year to $2,843 per unit per month on average in Q2 2026, while vacancy tightened to 4.0%.
Why are San Francisco Bay Area apartment rents rising despite a large construction pipeline?
The disconnect between falling deliveries and rising construction activity suggests the market is facing delayed project completions rather than a lack of future supply, meaning the timing of the nearly 18,500 units under construction will determine whether rent growth and tight vacancy persist.
ContactGARY BARAGONA |
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