Q1 2025 San Francisco Multifamily Report
San Francisco Multifamily Market Holds Steady Amid Broader Slowdown
In Q1 2025, transaction velocity of commercial real estate softened as investors adopted a wait-and-see approach amid uncertainty surrounding foreign tariff policy. Despite the broader market slowdown, key fundamentals in the San Francisco multifamily market remained resilient. Rents and capitalization rates held steady quarter-over-quarter, signaling continued investor confidence. Should the stock market maintain its momentum into bear territory, capital is expected to shift toward real assets. Coupled with declining interest rates, driven by increased demand for Treasury bills, multifamily sales activity will increase as investors seek stability.
District-by-District Analysis | Q1 2025 Average/Total
Cap Rate | $/SF | Total Transactions - 5+Unit Multifamily Properties - Source: SFAR MLS
District-by-District Analysis | Trailing Twelve Month Average/Total
Cap Rate | $/SF | Total Transactions - 5+Unit Multifamily Properties - Source: SFAR MLS
Transaction Volume and Active Listings
5+ Unit Properties - Sales Volume
5+ Unit Properties - Average $/SF | Cap Rate | GRM
Multifamily Vacancy Rate & Average Asking Rents
Federal Funds Rate, 30-Year Mortgage Rate, 5-Year Treasury, and 25-Year SBA504 Loan Rate
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