Bay Area, CA Multifamily Market Report | CBRE | Q1 2026

Market Overview

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The San Francisco Bay Area's multifamily market posted its strongest quarter in years in Q1 2026, driven by an AI-fueled tech resurgence that accelerated rent growth from 4.3% in Q4 2025 to 5.4% year-over-year, with average rents reaching $3,276 per unit across the region. Vacancy compressed to a Bay Area-wide 3.4%, with San Francisco hitting 2.9%, a 25-year low not seen since 2001. Net absorption surpassed 5,956 units against just 1,147 delivered, a 5.6x absorption-to-completion ratio that signals one of the tightest supply-demand dynamics in the country. San Francisco/Peninsula led rent growth at 11.3% year-over-year with average rents of $3,741 per unit, followed by Silicon Valley at 6.2% and Oakland/East Bay at 2.6%. Investment volume totaled $1.65 billion for the quarter, constrained more by a lack of available inventory than by buyer demand.

‍About CBRE

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CBRE is a global commercial real estate services and investment firm operating across major U.S. and international markets. Their Q1 2026 San Francisco Bay Area multifamily report tracks occupancy, rents, absorption, deliveries, and investment sales activity across all three sub-regions and 24 submarkets to help owners, developers, and investors evaluate market conditions and timing. To read the full report, click here.