San Francisco continued its trend for solid gains in apartment rents in the second quarter of 2024, clocking month-over-month rent gains for four straight months.
According to daily rent data collected by Apartments.com, the average multifamily rent in San Francisco increased to $3,100 monthly in August, a 1% increase over the peak level achieved in 2023.
This year's spring leasing season saw stronger demand than that of 2023 when rent levels barely moved. In contrast, growth was achieved in eight of the last nine months, and average rents are 2.7% above the low point reached last November.
Luxury and premium buildings have seen the year's highest rent increases. As of August, the average rent in four- and five-star buildings is $3,770, a figure 1.8% higher than August 2023 and 4.6% above November 2023.
The upturn in the multifamily market aligns with signs of improvement elsewhere in San Francisco’s economy — most notably, an increase in office leasing is likely bringing a new wave of tech workers to the city.
Several artificial intelligence companies have signed leases over the past nine months, bringing a collaborative startup mentality that requires in-office work and creates demand for apartments in San Francisco’s central neighborhoods.
Looking ahead, further job gains should help keep apartment demand positive. Moreover, the low levels of new commercial construction in San Francisco should keep supply in check, proving a strong basis for continued rent growth in the coming year.
