The multifamily real estate market in San Francisco exhibited signs of revitalized activity during the first quarter of 2025. It’s important to remember that the multifamily market in San Francisco consists of a relatively small number of highly varied properties across a wide range of neighborhoods, which can limit the reliability of broad statistical analysis.
For 2-4 unit buildings, the median sales price fell 4.4% compared to Q1 2024, while the median price per square foot declined 6.6%. At the same time, the median price per unit increased by 12.5%, suggesting stronger values for well-positioned or better-performing units. Median days on market dropped from 30 to 22 days, and the share of properties selling over asking rose 10.8%. The number of sales increased 10.5%, while inventory levels remained steady.
In the 5+ unit segment, the median sales price ticked up 2.4% year-over-year. Median price per square foot declined 8.5%, while median price per unit rose 7.6%. Cap rates increased 12.9% and gross rent multipliers (GRMs) declined 5.1%, signaling a slight shift toward improved investor returns. Days on market shortened from 57 to 49, and the number of sales surged by 50% compared to Q1 2024.
Rental rates remained stable throughout the quarter, with Zillow reporting an average monthly rent of $3,200.
Overall, the first quarter of 2025 sets the stage for ongoing stabilization and renewed momentum within San Francisco’s multifamily sector.
