SF Apartment Market Snapshot

San Francisco’s investment landscape in November 2025 shows renewed confidence and momentum, even if holiday seasonality has dialed back the pace slightly. While closings dipped from October’s surge, the pipeline remains strong — more than 50 buildings are currently in escrow, many expected to close before year-end or early 2026. Larger investors and experienced operators have stepped back in, with notable mid- and large-scale acquisitions signaling institutional belief in San Francisco’s long-term rental fundamentals. Buyers seem to be underwriting conservatively but competitively, with moderate rent-growth assumptions replacing speculative spikes. Overall, the tone feels disciplined yet optimistic, suggesting the market is settling into a healthier rhythm heading into 2026.

Broker Insight on Rents

In November 2025, the San Francisco multifamily market showed a significant surge in rental prices, making it the fastest-growing rental market in the U.S. -- Rents are up 12% YOY. Median asking rent for a one-bedroom in SF is $3,100.

The market is closing 2025 on a strong note, with vacancies at their lowest point since 2019 and rents continuing to climb. Demand remains resilient, fueled by the city’s job base, returning office occupancy, and enduring lifestyle appeal. Limited new construction is helping keep supply tight, which in turn supports rent growth — though rising operating costs, particularly insurance and maintenance, are adding pressure to margins. With tech employment stabilizing and AI investment accelerating, there’s a growing sense that demand could strengthen even further into 2026, positioning the market for a more stable and confident year ahead.