Berkeley, CA Multifamily Market Report | Matthews | Q4 2025

Market Overview

Berkeley's multifamily market held firm through Q4 2025, with vacancy at 7.5% and asking rents near $2,125 per unit, supported by the persistent demand pull of UC Berkeley and a major healthcare employment base. Rent growth softened modestly year-over-year, but per-unit pricing reached roughly $410,125, reflecting how deeply supply-constrained the submarket remains. With only 226 units under construction, new deliveries are minimal, and Berkeley's rent control environment continues to limit new development activity. Investment volume of $27.1 million and a 5.5% cap rate point to a selective but confident buyer pool, with cap rate compression expected as financing conditions improve.

About Matthews

Matthews Real Estate Investment Services is a national commercial real estate brokerage and advisory firm serving multifamily owners, investors, and developers across major U.S. markets. Their Berkeley, CA Q4 2025 multifamily market report tracks vacancy, rent growth, cap rates, and sales volume to help clients assess market conditions and refine investment timing. To read the full report, click here.