Multifamily Market Overview | San Francisco, CA

Market Overview

The Bay Area multifamily market began to rebound in Q1 2025, with net absorption returning to positive territory. San Francisco saw asking rents rise 3.5% year-over-year, while East Bay submarkets absorbed over 2,300 units. Vacancies declined across most submarkets, though they remain elevated in urban cores. Development activity slowed sharply due to financing constraints, and investment volume totaled $1.8 billion with cap rates ticking up slightly. Suburban submarkets such as Concord and Walnut Creek outperformed urban cores in both rent growth and leasing velocity.

About Lee & Associates

Lee & Associates is a full-service commercial real estate firm with offices across North America. Their quarterly reports focus on local fundamentals, blending transactional insight with up-to-date leasing, sales, and construction data. In markets like San Francisco and Oakland, their research captures both regional investment dynamics and submarket-specific trends—equipping landlords, investors, and developers with insights to navigate shifting economic and operational conditions.