Rents Decline, Supply Steadies
San Francisco’s multifamily market ended the third quarter with an uneven performance as fundamentals were influenced by several economic factors, including seasonal slowdowns, according to the latest San Francisco multifamily market report. Average advertised asking rents were down 0.1%, on a trailing three-month basis through September, to $2,811, while the national rate stood flat, at $1,750. Occupancy in the metro increased 40 basis points year-over-year, to 95.7%, above the 94.8% U.S. average, as noted in the national multifamily market report.
Unemployment reached 4.7% in August, 50 basis points higher than the national figure, according to preliminary data from the Bureau of Labor Statistics. Although job growth only saw a 0.5% rate of expansion over the 12 months ending in July, the rate was an improvement from the beginning of the year. The metro gained 27,500 net jobs during this period, with education and health services contributing the most (23,700 jobs). Meanwhile, tech layoffs continued, with the information sector contracting by 9,200 jobs.
Supply expansion was still low but showed signs of improvement, as developers completed 6,132 units year-to-date through September. This was only about 200 units less than the deliveries recorded during the same period last year. Construction starts were down 64.4% year-over-year, however. Meanwhile, investors traded $1.2 billion in multifamily assets year-to-date through September, on par with the total volume for 2023.
Read the full Yardi Matrix San Francisco Multifamily Market Report: November 2024
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