Q3 2024 San Francisco Multifamily Report
Investor sentiment of the San Francisco Multifamily market continues to trend upwards.
San Francisco Multifamily Responds Positively to 50-Basis-Point Fed Fund Rate Decrease
Q3 of 2024 was marked by a sustained increase in market optimism. This positive momentum continued over from the second quarter, following the Federal Reserve’s decision to finally implement the rate decreases they have been signaling; a 50-basis-point reduction in September. There has been a more than 50% increase in transaction sales involving large assets (10+ units) on a quarter-over-quarter basis, while capitalization rates have remained stable. Investor sentiment is surging toward critical mass, suggesting that the pace of the market’s recovery is poised to accelerate in the coming months.
District-by-District Analysis - Trailing Twelve Month Average/Total as of 10/1/2024
Cap Rate | $/SF | Total Transactions - 5+Unit Multifamily Properties - Source: SFAR MLS
5+ Unit Properties - Average $/SF | Cap Rate | GRM
5+ Unit Properties - Sales Volume
Multifamily Vacancy Rate & Average Asking Rents
Transaction Volume and Active Listings
Federal Funds Rate, 30-Year Mortgage Rate, 5-Year Treasury, and 25-Year SBA504 Loan Rate
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