The Multi-Unit Residential Property Markets
of San Francisco, Alameda & Marin Counties

This report generally separates out the 2-4 unit and the 5+ unit apartment building markets, since they typically have different dynamics and values. All the statistics below are broad generalities covering a wide variety of buildings of very different location, size, quality, condition, tenant profile, income and income potential. Some of the charts pertain to multiple counties, while later in the report, we drill down on supply and demand statistics specific to San Francisco. Note that some of the analyses track the last 12 months of sales, while others have a final data point reflecting only 2018 YTD sales.

As a political update, Proposition F passed in San Francisco, providing city tenants facing eviction proceedings – for any reason – the right to taxpayer-funded legal representation.

According to an analysis by Socketsite, the SF Accessory Dwelling Unit (ADU) program has so far resulted in 691 permit applications to add 1,244 such units to existing buildings. However, only 179 permits for 306 ADUs have so far been issued, and only 28 ADUs have been completed. 90 permit applications for 151 ADUs were filed in Q1 2018. There has been talk of the Planning Department simplifying the process and easing the requirements for the construction of ADUs, since current regulations have clearly been counter-productive to the goals of the program.

Bay Area Residential Rents

San Francisco Commercial Rents
Not so long ago, there were worries that a glut in new office buildings would hit market putting downward pressure on office rents, but every new building has had its space snapped up by major high-tech companies. This is pertinent to the apartment rental business since all those office buildings being leased are presumably going to be filled with additional, well-paid employees, maintaining pressure on apartment rents. This will help balance new apartment buildings coming on market as will be discussed later in this report.

Additional Chart: Median List Rent per Square Foot

Sales, Values & Trends by County & SF District

5+ Unit Buildings

2-4 Unit Buildings

San Francisco Market Overview Trends

Sales, Values & Statistics by Submarket
from our Q1 2018 report

Building Cranes Everywhere

Approximately 68,000 housing units are now in the SF new construction pipeline. Consistent with the trends in recent years, the percentage of rental units under construction is higher than for those units intended as condo sales.

Just because a project is in the pipeline does not guarantee it will be built as planned. Plans are constantly being added, changed and abandoned. New housing construction is extremely sensitive to changes in economic conditions.


Q2 2018 Sales of San Francisco 5+ Unit
Apartment Buildings
San Francisco is a unique residential-investment market: the buildings are smaller and older than in most places, built in a wide range of architectural styles. The great majority of the market is under rent control, which makes upside rental-income potential a big component of valuation, even if it is unknown when that potential might be realized. Furthermore, the units are typically unlike those in suburban garden-apartment complexes, and within the city the variety in buildings and units is enormous.

In real estate, the devil is always in the details: If you are interested in further insight into the details of any of the above sales, or regarding properties currently on the market, please contact me.

Broker Performance in
Residential Multi-Unit Property Sales

According to Broker Metrics, which crunches MLS sales data, of the largest brokerages in San Francisco for multi-unit residential property sales, Paragon ranks first for highest sales volume (in both 2+ and 5+ unit building sales). Paragon represents both many more buyers and many more sellers in successfully completed transactions. We also do significant amounts of business in surrounding Bay Area counties.


Link to our latest report on the SF residential homes market
All Paragon market reports can be found here


It is impossible to know how median and average value statistics apply to any particular apartment building without a specific, tailored, comparative market analysis, which can be provided upon request.

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: This is especially true for multi-unit properties, with the enormous range of property types, sizes, conditions, circumstances, qualities, financial data and locations. We are often dependent upon listing agents for income and expense details, which can be of varying accuracy. A percentage of investment property sales are not reported to MLS, which sometimes limits our ability for more comprehensive data analysis. All numbers to be considered approximate.

© 2018 Paragon Commercial Brokerage

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