SAN FRANCISCO MARKET UPDATE | Q4 2022

Similar to the residential market, the overall trend for multifamily buildings in San Francisco was one of less competition and declining sales in 2022. The economic headwinds that arose and strengthened throughout the year had significant impacts on supply and demand.

On a more positive note, rental rates in San Francisco have continued to moderately improve.Rent.com reported an average annual gain of 3 percent for 1-bedroom apartments and a 9 per-cent jump in 2-bedroom apartments.

With the holidays now behind us, we look ahead to the spring-selling season - historically the busiest time of the year for real estate. An influx of new and refreshed listings is expected to replenish the market over the next several months. For sellers, pricing, preparation, and market-ing are now critical, while buyers are more likely to negotiate aggressively, especially on buildings with longer days-on-market.