Multifamily rental growth in the Bay Area is becoming a standout in the Pacific region. In the third quarter, the Bay Area averaged $3,212 per unit in the second quarter. This is up 4.3 percent year-over-year and $43 from the previous three months, according to a market report from CBRE. The annual growth led all Pacific regions in the third quarter, CBRE said.
"All Bay Area markets shared in effective Rent growth increases shown by 6.8% for San Francisco/Peninsula, 3.2% for Silicon Valley, and 1.6% for Oakland/East Bay compared to 0.5% for US overall," the CRE firm explained in further context.
Net absorption showed even more impressive gains, with demand up by nine percent from the previous three months to 1,061. Silicon Valley absorbed the most units in the area during the third quarter, with 893. Year-to-date net absorption in the Bay Area is now 10,430 units. This "resulted in a 1.7x absorption to completions ratio as only 6,123 units (0.9% of existing inventory) have been delivered in 2025," according to CBRE.
One category lagged, however — vacancy — which ticked up by 30 basis points to 3.8 percent.
So far in 2025, multifamily transactions in the Bay Area have totaled $3.15 billion. Some big deals in the third quarter involved The Madelon in San Francisco, trading for $126.70 million, Potrero Launch in San Francisco, selling for $76 million and 830 EddyStreet going for $43.30 million.
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