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San Francisco, 5+ Unit Buildings (through Q2 2023)

July 2023 Multi-Family Market Report for Residential S+ Unit Buildings 

5+ unit residential income buildings. Listings and sales reported to NorCal ML5 Alliance. This market consists of a relatively small number of sales, of buildings of widely varying sizes, qualities, and financial characteristics, across a broad range of locations: This makes meaningful statistical analysis more difficult. All numbers should be considered approximate. 

 

San Francisco Apartment Building Market - 5+ Units

Listings Closing Sale in Quarter since 2017

Bar chart of quarterly San Francisco 5+ unit apartment building sales from 2017 to Q2 2023.

 

San Francisco Apartment Building Market - 5+ Units

Listings Going into Contract in Quarter since 2018 

Bar chart of San Francisco 5+ unit apartment listings going into contract, Q1 2018–Q2 2023.

 

Average Gross Rent Multiples

San Francisco 5+ Unit Apartment Building Sales 

How this analysis applies to any particular property is unknown without a specific comparative market analysis.

Bar chart of San Francisco 5+ unit apartment building gross rent multiples, peaking at 17.8 in 2016 and reaching 12.2 in 2023 YTD.

 

Average Cap Rates

San Francisco 5+ Unit Apartment Building Sales

How this analysis applies to any particular property is unknown without a specific comparative market analysis.

Bar chart of San Francisco 5+ unit apartment building cap rates from 2007 through 2023 YTD.

 

Average Price per Unit

San Francisco 5+ Unit Apartment Building Sales

How this analysis applies to any particular property is unknown without a specific comparative market analysis.

Bar chart of San Francisco 5+ unit apartment building prices per unit, peaking at $485,000 in 2019.

 

San Francisco 5+ Unit Apartment Building Sales 

Average Dollar per Square Foot Values

How this analysis applies to any particular property is unknown without a specific comparative market analysis.

Chart of San Francisco 5+ unit apartment sales’ average dollars per square foot, 2003 through 2023 YTD.

 

Percentage of Listings Accepting Offers in Quarter (Absorption Rate)

San Francisco 5+ Unit, Multi-Family Building Market Dynamics

Bar chart of San Francisco 5+ unit building absorption rates by quarter, Q1 2018–Q2 2023; Q2 2023 was 18%.

 

5+ Unit Multi-Family Building Markets

12 Months Sales by San Francisco Realtor District*

How this analysis applies to any particular property is unknown without a specific comparative market analysis.

San Francisco 5+ unit multifamily sales statistics by Realtor district through Q2 2023.

 

Multi-Unit Residential Property Sales, 5+ Units

12 Month Sales by San Francisco Realtor District*

Chart of San Francisco 5+ unit residential property sales by district and building size, with 5–9-unit buildings predominant.

 

San Francisco 5+ Unit Apartment Building Sales

12 Months Sales by Price Segment*

How this analysis applies to any particular property is unknown without a specific comparative market analysis.

Bar chart comparing San Francisco apartment building sales by price segment and number of units.

 

San Francisco Residential Rents - Approximate, Good Faith Estimates*

Average Asking Rent, 1994 - Present, Q1 Data Points  (except as noted)

Chart of estimated San Francisco residential rents from 1994 through Q2 2023, with market downturns and recovery annotated.

 

San Francisco County Population Changes 

Age Distribution, U.S Census Estimates*

From April 2020 to July 1, 2022, the county's population dropped by an estimated 7.5%. Population changes are driven by domestic and foreign migration trends, and by natural causes (births & deaths).

Chart comparing San Francisco County population by age group in April 2020 and July 2022.

 

Weekly Office Attendance: San Francisco, San Jose and Other Selected Metro Areas

Line chart comparing weekly office attendance in five metro areas from April 2020 to June 2023; San Francisco and San Jose remain among the lowest.

 

San Francisco Housing*

Total Housing Units: 414,581

Occupancy Rate: 85% Vacancies are concentrated in rental units. 

Highest % of studio and 1-BR units in Bay Area.

 

Multi-unit buildings make up 66% of total units- the highest % in the Bay Area- which include condos, co-ops, TICs, rental apartments, university & social housing.

40% of SF housing units are owner-occupied and 60% are tenant occupied: By far the highest tenant ratio in the Bay Area.

 

San Francisco housing infographic with statistics on building types, occupancy, construction eras, and household sizes.

 

San Francisco Unemployment Rates

2019-2023 YTD, per CA Employment Development Department 

San Francisco unemployment rate chart, with a sharp pandemic-era peak and rates near 3% by May 2023.

 

San Francisco Employment Trends

Number of Employed Residents since 2000

Chart of San Francisco employment from 2000 to 2023, showing the sharp 2020 drop and subsequent recovery.

 

San Francisco Apartment Building Sales

By Broker, 5+ Unit Residential Sales, 2020-2023*

Bar chart of San Francisco 5+ unit apartment building sales by brokerage, with Compass leading at 234.

 

 

Macroeconomic trends graphic with charts of interest rates, consumer sentiment, financial markets, and inflation.

 

 

Bay Area market reports webpage with a COMPASS market reports link and regional report previews.

 

Note that the quantity of sales in any given local submarket is usually relatively small and/or the number of sales that report the necessary financial information can be limited. Buildings of different ages, qualities and sizes selling in different periods can cause these average and median figures to fluctuate significantly. Furthermore, the reliability of some of these calculations depends upon the quality of the Income and expense figures provided by the listing agents, and sometimes instead of actual numbers, much less meaningful projected or scheduled figures are used. Therefore, the above statistics should be considered very general indicators, and how they apply to any particular property without a specific comparative market analysis is unknown.

 

These analyses were made in good faith with data from sources deemed reliable, but they may contain errors and are subject to revision. Statistics are generalities and all numbers should be considered approximate. Numbers may change with late-reported sales activity.

 

Compass is a real estate broker licensed by the State of California, DRE 01527235. Equal Housing Opportunity. 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 disclaims any and ail lability relating to this report, including without imitation any express or implied representations or warranties for statements contained in, and omissions from, the report. Nothing contained heroin is intended to be or should be read as any regulatory, legal, fax, accounting or other advice and Compass does not provide such advice. Al opinions are subject to change without notice. Compass 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.

 

© 2023 Compass COMPASS

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