San Francisco, CA Multifamily Market Report | Lee & Associates | Q4 2025

Market Overview

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San Francisco's multifamily market posted 6.5% year-over-year rent growth in Q4 2025, the strongest reading in this report series, with asking rents reaching $3,133 per unit. Vacancy fell to 4.01%, its lowest point in over a year, as trailing 12-month absorption grew to 3,075 units. The development pipeline remains severely constrained at 1,504 units under construction, providing little relief for renters. The investment sales market told a more complicated story: major debt purchases tied to pre-pandemic portfolios assembled by Veritas and Ballast indicated ongoing stress among overleveraged owners, even as sale pricing climbed to $387,291 per unit. Structural supply scarcity continues to drive the market's operational strength.

‍About Lee Associates

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Lee Associates is a nationwide commercial real estate brokerage serving investors, owners, and occupiers across property types. Their San Francisco Q4 2025 multifamily market report tracks absorption, vacancy, asking rents, and capital markets activity to help investors and owners assess market conditions. To read the full report, click here.