San Francisco Multifamily Market Report

Supply constraints help tighten San Francisco’s rental market. The metro has seen a notable drop in multifamily completions over the past three years. Inventory growth averaged just 1.0 percent — well below the 10-year mean of 1.8 percent. This has supported vacancy trending downward, though the pace is slowing. Tightening vacancy is helping rent growth improve despite ongoing demographic and employment challenges. The metro continues to lose white-collar jobs, especially in finance and professional services. Yet with the highest home price-to-income ratio nationwide, rental demand should remain resilient, even with economic headwinds.