SAN FRANCISCO MARKET UPDATE | Q3 2023

It is clear that the multifamily housing market has witnessed a substantial decline across various key metrics since its height in 2021. During the third quarter, the median sales price for two-to-four unit buildings saw a notable reduction of 13.1 percent, while five-plus unit buildings experienced a 23.8 percent decrease when compared to the same period last year.

Despite these statistics, the prevailing sentiment in the market is one of enthusiasm. Many prospective buyers are capitalizing on the present landscape and securing deals that haven’t been available for years. However, despite this promising outlook for buyers, the market continues to face challenges in the form of rising interest rates and limited inventory.

According to Zillow, rental rates have been on a downward trend since spring, with the median rent now standing at $3,495 per month