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Research - SEPTEMBER 10, 2019

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San Francisco Bay Area multifamily market remains strong

by Andrea Zander

The San Francisco Bay Area multifamily market finished first half 2019 with strong rent growth, absorption and completions, according to Cushman & Wakefield.

The market absorbed nearly 2,700 units during the first six months of 2019. The Santa Clara (801 units) and Alameda (713 units) submarkets recorded the highest net gains in positive absorption.

The Bay Area vacancy rate remained at a low 3.9 percent, unchanged year-over-year (YOY). The San Mateo County figure recorded the largest YOY decrease from 4.5 percent to 4 percent, while San Francisco hit an 18-month low at 4.1 percent. These neighboring business hubs are actively keeping up with demand by picking up the pace of construction deliveries or approving entitlements.

Asking rent growth remained positive increasing to $2,768 per unit in the second quarter of 2019, 1.7 percent higher YOY, 3.5 percent over three years, and a staggering 82.7 percent since the Great Recession ended in 2009. The Bay Areaâ€

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