Rents Accelerate, Supply Winds Down
San Francisco’s multifamily market entered full recovery mode in the spring leasing season, with most fundamentals improving, according to the latest San Francisco multifamily market report. Average advertised asking rents were up 0.8%, on a trailing three-month basis through May, to an average of $3,019, 50 basis points ahead of the U.S. figure. Year-over-year rents increased 4.5%, placing San Francisco at the top of the ranking among the 30 major metros tracked by Yardi Matrix and 430 basis points higher than the national average. Overall occupancy ticked up 20 basis points, to 95.9% as of April, while the national figure clocked in at 94.1%, as noted in the U.S. multifamily market report.
Year-over-year employment growth in San Francisco was 0.2% through February, 30 basis points ahead of the U.S. rate. This marked the beginning of a recovery after more than 17 months of contractions. Unemployment improved as well, at 3.9% in April, 40 basis points below the U.S. and up 20 basis points year-over-year, according to preliminary data from the Bureau of Labor Statistics. Several transit and infrastructure mega projects are ongoing in the Bay Area and will likely boost transit-oriented residential development in the coming decade. Among recent projects, the SFMTA board approved $612 million for the Mission District bus yard modernization.
Supply expansion returned to a more moderate pace. Year-to-date through May, developers added 832 units, with another 11,639 units under construction.
Read the full Yardi Matrix San Francisco Multifamily Market Report: July 2026
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