Apartment investors swamped by demand

Apartment List recorded San Francisco vacancy near 3.5% and citywide median rents up roughly 10.6% year‑over‑year, placing the market among the fastest‑growing U.S. rental markets in 2025. (apartmentlist.com) Q1 2025 multifamily sales volume in San Francisco totaled about $734 million while transaction cap rates averaged near 4.6%, according to market reports tracking large‑asset trades. (matthews.com) Matthews and other market trackers showed average sale price per unit in early‑2025 above $400,000, with Class B/C trades averaging roughly $314,000 per unit in the most active subsegments. (matthews.com) Major institutional transactions continued: Brookfield sold the 410‑unit L Seven in SoMa for $177.5 million (about $433,000 per unit) in September 2024, a high‑visibility exit that underscored buyer appetite for scale. (therealdeal.com) Leasing brokers and local reporting documented return of renter bidding wars and offers‑over‑asking in 2025, with luxury and downtown listings frequently receiving multiple competing applications. (therealdeal.com) Kidder Mathews’ Q1 2026 note flagged early softening—vacancy edged up and asking rents trended downward—indicating investor activity may be turning more selective as market momentum shifts. (kidder.com) Local broker market updates reported median days on market for multi‑unit listings dropping from 30 to 22 and a rise in properties selling over ask (+10.8%), signaling sellers are increasingly able to capture premium pricing in off‑market and quick‑close deals. (vanguardpropertiesagenda.com)