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Market Report

San Francisco Multifamily Market Report

3Q 2023

Tapering Construction, Improving In-Migration
Place San Francisco on a More Favorable Path

Renter demand trending positive. Despite the many trials that the market has faced since the pandemic began, including the net loss of about 100,000 residents, roughly 11,000 more apartments are occupied today than in 2019. Unlike in the other major Bay Area metros, San Francisco has recorded consistently positive net absorption since 2020. Renter demand is generally increasing, albeit not at a pace to match construction. Approximately 14,000 apartments have been added to the metro since the end of 2019, contributing to elevated vacancy. New supply pressure is letting off, however, as this year’s pipeline is less than half the 2020 or 2021 count. Apartments insulated from openings, such as Class C rentals, are not without challenges as well. A shortfall in retail trade and hospitality positions is inhibiting demand growth among budget-conscious renters.
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