Market Report
Oakland Multifamily Market Report
2025 Investment Forecast
Tightening Vacancy, Including for Newer Units,
Underscoring Drive for Investment
Oakland hits inflection point with improving operations. Leading the Bay Area in labor recovery, the metro saw renter demand pick up in 2024, lowering vacancy with tailwinds likely to push into 2025. Needs were broad, with seven of the nine submarkets noting lower vacancy as total net absorption last year hit its highest level since 2021. Under a lower 2025 delivery slate, the vacancy trend should extend into the near future, as construction will be mainly focused in Fremont and the Oakland-Berkeley area. The latter’s inventory has grown over 15 percent since 2018 — the largest increase among submarkets — but a thinner pipeline beyond 2025 will allow for gradual absorption and rent stabilization. Class A vacancy is lower here than that of Class B or C, suggesting the supply is justified. Marketwide, Class B properties note the tightest operational conditions, primarily in the Fremont, Concord-Martinez and San Ramon-Dublin submarkets. The significant rent delta between Class A and B will continue to highlight the appeal of mid-tier options for those priced out of luxury rentals.
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