The State of the Multifamily Market - San Francisco
As investors are becoming accustomed to current rates, they’ve become more active in the last two quarters.
San Francisco Multifamily Market Performance - Updated Q1 2024
2-4 Unit Properties
2-4 Unit Residential Property Sales - Trailing 12 Months
Source: SFAR MLS
District 5, with notable neighborhoods like Eureka Valley, Cole Valley, and Mission Dolores, was the most active market for 2-4 unit properties in the last 12 months.
2-4 Unit Residential Building Values by District - Trailing 12 Months
Source: SFAR MLS
| District | Median Price | Median Price/SF | Median Size | |
|---|---|---|---|---|
| 7 - Pacific Heights, Marina, Cow Hollow | 2-Unit Buildings 3-Unit Buildings 4-Unit Buildings |
$2,650,000 $2,460,000 $2,405,000 |
$852/SF $765/SF $793/SF |
3,327 SF 3,139 SF 3,403 SF |
| 8 - Russian, Nob, & Telegraph Hills, North Beach | 2-Unit Buildings 3-Unit Buildings 4-Unit Buildings |
$1,850,000 $1,800,000 $1,875,000 |
$737/SF $504/SF $626/SF |
2,715 SF 3,772 SF 3,560 SF |
| 5 - Noe, Eureka, & Cole Valleys, Mission Dolores | 2-Unit Buildings 3-Unit Buildings 4-Unit Buildings |
$2,118,000 $1,900,000 $1,880,000 |
$830/SF $594/SF $555/SF |
2,660 SF 3,215 SF 3,511 SF |
| 6 - NoPa, Alamo Square, Hayes Valley | 2-Unit Buildings 3-Unit Buildings 4-Unit Buildings |
$1,450,000 Not Enough Data $1,700,000 |
$711/SF Not Enough Data $492/SF |
2,099 SF Not Enough Data 3,032 SF |
| 1 - Richmond, Lake Street | 2-Unit Buildings 3-Unit Buildings 4-Unit Buildings |
$1,691,000 $1,669,000 $1,940,000 |
$629/SF $486/SF $530/SF |
2,836 SF 3,045 SF 3,800 SF |
| 9 - Mission, Potrero Hill, Bernal Heights | 2-Unit Buildings 3-Unit Buildings 4-Unit Buildings |
$1,550,000 $1,400,000 $1,290,000 |
$641/SF $507/SF $427/SF |
2,420 SF 2,517 SF 2,896 SF |
| 2 - Sunset, Parkside | 2-Unit Buildings 3-Unit Buildings 4-Unit Buildings |
$1,569,000 Not Enough Data $1,900,000 |
$614/SF Not Enough Data $566/SF |
2645 SF Not Enough Data 3650 SF |
| 10 - Bayview, Excelsior, Portola | 2-Unit Buildings 3-Unit Buildings 4-Unit Buildings |
$950,000 Not Enough Data Not Enough Data |
$446/SF Not Enough Data Not Enough Data |
2,005 SF Not Enough Data Not Enough Data |
Absorption Rate - 2-4 Unit Properties - Trailing 12 Months
Source: SFAR MLS
Absorption Rate: The higher the percentage of listings accepting offers, the stronger the buyer demand as compared to the supply of properties available to purchase.
The absorption rate has remained relatively subdued since interest rates soared in mid-2022, but is ticking up.
5+ Unit Properties
5+ Unit Residential Property Sales
Source: SFAR MLS
The city’s 5+ unit inventory is dominated by 5-9 unit wood-frame buildings.
5+ Unit Residential Building Sales by District - Trailing 12 Months
Source: SFAR MLS
| District | Median Price | Median $/SF | Median # of Units | Median Size |
|---|---|---|---|---|
| 7 - Pacific Heights, Marina, Cow Hollow | $3,629,000 | $518/SF | 6 Units | 7,097 SF |
| 5 - Noe, Eureka, & Cole Valleys, Mission Dolores | $2,252,500 | $429/SF | 6 Units | 5,499 SF |
| 1 - Richmond, Lake Street | $3,250,000 | $446/SF | 8 Units | 6,264 SF |
| 6 - NoPa, Alamo Square, Hayes Valley | $2,515,000 | $385/SF | 7 Units | 6,605 SF |
| 8 - North - Russian, Nob, & Telegraph Hills, North Beach | $2,325,000 | $387/SF | 7 Units | 6,390 SF |
| 2 - Sunset, Parkside | $1,745,000 | $403/SF | 6 Units | 4,419 SF |
| 9 - Mission, Potrero Hill, Bernal Heights | $1,683,000 | $288/SF | 6 Units | 4,137 SF |
| 8 - South - Downtown, Tenderloin | $4,000,000 | $263/SF | 17 Units | 11,500 SF |
Absorption Rate - 5+ Unit Properties - Trailing 12 Months
Source: SFAR MLS
Absorption of 5+ unit properties over the last 6 quarter has been relatively low compared to historic rates, but has been steadily improving.
Contact us for more market information or multifamily investment portfolio consultation
Brian Leung
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Brian@LL-CRE.com
Jeremy Lee
Senior Vice President
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Carla Pecoraro
Associate
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Chris Leung
Associate
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415 828 9108
Chris@LL-CRE.com