Q4 2024 San Francisco Multifamily Report
The Demand for 10+ Unit Multifamily Spikes in the 4th Quarter of 2024
Three Consecutive Quarters of Positive Growth
In Q4 2024, the market experienced its third consecutive quarter of positive growth. This trend is attributed to increased liquidity in the capital markets from recent rate cuts, it has revitalized the transaction velocity of larger properties back to pre-COVID levels. Specifically, sales of multifamily properties with 10 or more units surged by 213% compared to Q4 2023. Additionally, key metrics such as rents, vacancy rates, and capitalization rates have stabilized on a quarter-over-quarter basis, indicating robust investor confidence in the San Francisco multifamily market.
District-by-District Analysis | Trailing Twelve Month Average/Total as of 12/31/2024
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
This report has been prepared solely for information purposes. The information herein is based on or derived from information generally available to the public and/or from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy or completeness of the information. Compass and LL CRE Group disclaim any and all liability relating to this report, including without limitation any express or implied representations or warranties for statements contained in, and omissions from the report. Nothing contained herein is intended to be or should be read as any regulatory, legal, tax, accounting or other advice and Compass/ LL CRE Group does not provide such advice. All opinions are subject to change without notice. Compass and LL CRE Group makes no representation regarding the accuracy of any statements regarding any references to the laws, statutes or regulations of any state are those of the author(s). Past performance is no guarantee of future results.
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Brian Leung
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415 278 7838
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Jeremy Lee
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Carla Pecoraro
Associate
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415 312 8901
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Chris Leung
Associate
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415 828 9108
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