San Francisco’s multifamily rental market continues to demonstrate solid growth in 2024, with the second quarter marking the fourth consecutive month of rising rents. Data from Apartments.com reveals that the average monthly rent for multifamily properties in the city reached $3,100 in August, representing a 1% increase over 2023’s peak levels.
This year’s leasing season outperformed 2023, with rental rates rising in eight of the last nine months, resulting in a 2.7% rise from November 2023. High-end properties have seen the most significant increases, with average rents in four- and five-star buildings reaching $3,770—a 4.6% gain since November 2023.
These positive trends in the rental market are in line with broader economic improvements in San Francisco, particularly in the commercial real estate sector. The city has witnessed a surge in office leasing activity, driven by an influx of tech companies, especially in the AI space. This demand for office space is expected to sustain multifamily rental growth, supported by continued job gains and limited new construction in the market, setting the pace for further rent increases in the coming year.
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Source: CoStar
