San Francisco Multifamily Report – February 2026
The seasonal slowdown is barely putting a dent in the market's strong year.
San Francisco’s fundamentals softened at year-end 2025, as average advertised asking rents fell 0.4 percent, on a trailing three-month basis through December, to $2,885, while the national rate declined 0.3 percent to $1,737. Year-over-year, rents rose 1.9 percent, marking the fifth strongest performance among Yardi Matrix’s top 30 metros. The occupancy rate in stabilized properties continued to climb, up 40 basis points year-over-year, to 95.8 percent in November.
Employment was down 0.5 percent year-over-year through September, while the national average was up 0.8 percent. Unemployment held at 4.4 percent in November, on par with the U.S. and below the state (5.5 percent). San Francisco lost 12,100 net jobs in the 12 months ending in September, with gains recorded only in education and health services (21,600 jobs) and other services (1,300). All other sectors lost 35,000 jobs combined, with professional and business services (-11,200) and manufacturing (-8,900) taking the largest hits. Notable project updates included the $2.6 billion Terminal 3 West Modernization at San Francisco International Airport and UCSF’s Helen Diller Hospital at Parnassus Heights moving forward under a $4.3 billion budget, with an expected opening in 2030.
Supply growth moderated in 2025, with 5,811 units delivered and 10,851 underway. Investment volume totaled $2.4 billion in 2025, and the average price per unit rose 20 percent year-over-year, to $415,946 in December.
