Mid-Year 2021 Bay Area Multifamily Market Comparison

Activity Continues to Pick Up in All Markets Throughout the Bay Area.

San Francisco leads the charge with 61 transactions of 5+ unit properties year-to-date. Compare this to 52 during the same time period in 2020, and 42 from July 15 to end-of-year 2020. Still, transaction volume in San Francisco remains depressed compared to the first halves of 2017 and 2018, where 81 and 82 transactions closed in the first halves of each year, respectively.

San Francisco leads the charge with 61 transactions of 5+ unit properties year-to-date. Compare this to 52 during the same time period in 2020, and 42 from July 15 to end-of-year 2020. Still, transaction volume in San Francisco remains depressed compared to the first halves of 2017 and 2018, where 81 and 82 transactions closed in the first halves of each year, respectively.

Other Key Market Indicators

  • The unemployment rate in the San Francisco-Oakland-Fremont metro stood at 5.5 percent in May 2021, down from 6.7 percent in January. San Jose’s unemployment rate during May was 4.7 percent, down from 5.8 percent in January. (Source: BLS)

  • Office vacancy rates throughout the region remain elevated. San Francisco’s Q2 2021 overall (direct+sublease) office vacancy rate is currently 20.1 percent, the East Bay is at 17.8 percent, and the South Bay is at 13.6 percent. (Source: Cushman and Wakefield)

  • Approximately 27,500 households moved into of San Francisco while 68,000 moved out in 2020 - a net loss of 11 percent (-40,500 households). Contrast this with a net household gain of 0.8 percent (+3,000 households) for Contra Costa County. The general trend is a movement out of densely populated cities into suburban areas. (Source: Compass Commercial, Wall Street Journal)

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Let us know if you have questions about multifamily in the Bay Area. Email team@ll-cre.com

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