Market Report
San Francisco Multifamily Market Report
2025 Investment Forecast
Recovering Bay Area Labor Market and
Concentrated Construction Provide Strategic Investment Options
In-person work policies extend multifamily recovery. Fueled by return-to-office mandates such as Salesforce’s four-day in-person policy and tech firm expansions like OpenAI’s 315,000-square-foot office addition, migration into San Francisco will continue amid the first labor market growth since 2022. This will help tighten multifamily fundamentals metrowide after nearly all submarkets saw vacancy fall last year. The stretch from Visitacion Valley to Downtown stood out, with over 50 percent of the city’s net absportion and annual effective rent growth north of 2 percent. As household formation inches back up to 2013 levels this year — over 1 percent — the suburbs between the cities of South San Francisco and San Mateo will see a similar trend. With flexibility to commute north to San Francisco proper or south to Palo Alto, this area saw vacancy dip last year, boasting over 70 percent of San Mateo County’s net absorption. Notably fewer deliveries here should allow local vacancy compression to continue in 2025.
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