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Market Report

San Francisco Multifamily Market Report

4Q 2024

New Supply-Demand Equilibrium Bolstered
Through Shifting Labor Markets Conditions

Returning renters leading to supply-demand realignment. While the total number of white collar positions has fallen since June 2023, companies like Salesforce reinforcing return-to-office policies are prompting people to return to the city, also producing spillover need for retail, hospitality and other service roles. This has supported demand for both higher-end apartments and budget-friendly options. Elevated financing challenges and other municipal hurdles are constraining developers’ ability to meet market demand. Since 2021, net absorption has consistently outpaced arrivals in San Francisco, although the gap between the two is tightening. Class C rentals, insulated from openings, have continually recorded quarter-to-quarter decreases in vacancy since 2021, reflecting a growing need for budget-conscious housing in the market.
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