San Francisco, CA Multifamily Market Report | Matthews | Q4 2025

Market Overview

San Francisco's multifamily market entered Q4 2025 with supply structurally capped by longstanding zoning restrictions and limited construction starts, setting the stage for demand to gain ground. Vacancy tightened as 91 units were absorbed during the quarter, while asking rents held near $2,100 per unit despite modest annual rent growth of -0.5%. The bigger signal came from investment activity: sales volume reached $319.9 million, up 109.4% year-over-year, with cap rates compressing to 4.6%. A major tech presence anchored by Apple, Meta, Google, and Salesforce continues to support household formation, and with units under construction declining, the supply-demand balance is improving.

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 San Francisco, 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.