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Market Report

San Francisco Multifamily Market Report

2Q 2023

Steady Economic Growth and Limited Supply
Pressure Promote Further Vacancy Compression

Job growth spurs absorption. Despite recent headlines of layoffs and hiring freezes from notable tech firms headquartered in the Bay Area, the local economy has remained resilient and is driving the recovery in San Francisco’s apartment sector. The addition of nearly 40,000 new positions over the past year ending in March lowered unemployment to 2.7 percent, 80 basis points below the national average. This steady rate of job creation is underpinning renter demand. Entering April, trailing 12-month absorption outpaced the long-term average, contributing to declining vacancy. Life sciences and industrial employment opportunities are stimulating leasing activity in locales like South San Francisco-San Bruno-Millbrae, San Mateo-Burlingame and Foster City-Redwood Shores. Meanwhile, the presence of notable tech firms, including Google and Meta, is stoking renter demand in Redwood City-Menlo Park.
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