Multifamily investment activity across the San Francisco Bay Area surged in 2025, signaling renewed confidence after several years of volatility. With a few weeks remaining in the calendar year, total sales volume is on track to equal or possibly surpass 2019’s high of $7 billion.
Year-to-date sales volumes reached $2.1 billion in San Jose, $2 billion in the East Bay, and $2.4 billion in San Francisco. This rebound reflects improving fundamentals, easing financing conditions, and strong demand driven by the resilience of the tech sector and demographic stabilization.
Performance varied by market. San Jose matched its 2024 record, buoyed by institutional confidence in Silicon Valley’s growth prospects. The East Bay surpassed its five-year average, thanks to its affordability and proximity to employment hubs. San Francisco posted the highest dollar volume, with investors taking note of the city's extremely low vacancy rates and rapidly rising rents.
Notable transactions underscore the appetite for scale and quality. In San Jose, Park Kiely sold for $370 million ($390,000 per unit), and 1250 Lakeside traded for $143.5 million ($574,000 per unit). The East Bay saw The Overlook at Walnut Creek close at $163 million ($572,000 per unit), while San Francisco recorded The Madelon’s sale at $119.3 million ($588,000 per unit). These deals highlight a preference for four- and five-star properties in transit-oriented submarkets.
Buyer trends shifted notably in 2025. Institutional and REIT investors accounted for more than half of San Jose and San Francisco’s volume, while private equity funds pursued value-add opportunities in the East Bay. Average cap rates for lower-tier properties in most areas remain approximately 150 basis points above their 2022 levels, but some neighborhoods have started to see lower cap rates in recent months.
Economic fundamentals support this momentum. San Francisco’s population grew 1.2%, East Bay unemployment fell to 4.5%, and San Jose’s median household income climbed 5% to $170,000. With limited new supply and further interest rate cuts on the horizon, multifamily sales activity is poised to remain strong into 2026.
