San Francisco’s multifamily market continued to show resilience in November, even as monthly rent growth paused. After months of robust increases, average asking rents edged down by 0.06% from October, settling at $4.42 per square foot. This minor dip follows a strong upward trajectory earlier in the year and reflects seasonal moderation rather than a reversal of fundamentals.
Year over year, rents remain up 5.4%, the fastest growth rate among major U.S. metro areas. The average monthly rent now stands at $3,310, 88.6% above the national average of $1,755. While San Francisco’s quarterly growth outpaces the U.S. by a wide margin, 5.4% versus 0.2% nationally, the gap underscores the city’s unique demand drivers, including a recent influx of high-paying tech jobs and limited new supply.
Economic conditions continue to support strong rental demand. Artificial intelligence-driven firms are expanding aggressively, fueling job growth and reversing population declines. Vacancy has tightened to 4.5%, its lowest level in a decade, as absorption outstrips deliveries. With only 2,300 units under construction, just 1.2% of inventory, supply constraints are expected to keep upward pressure on rents into 2026.
Property-level data illustrates the market’s dynamics. The Quincy at 555 Bryant St., completed in the spring, offers 501 units with average asking rents near $5,165 and effective rents around $4,967, posting a vacancy rate of around 30%. Large-scale projects such as 7 S. Linden Ave. in South San Francisco (543 units) and Broadway Plaza in Redwood City (520 units) are under construction, bringing additional capacity to these in-demand cities. These developments, however, will not be completed until late 2026 or beyond, leaving near-term conditions highly competitive.
November’s slight monthly decline in rent is a blip in an otherwise strong growth story. With tech-sector expansion driving demand growth, and limited construction, San Francisco’s multifamily market remains positioned for continued rent gains in the year ahead.
