The current wave of new apartment construction added more than 25,000 units to the Bay Area since 2013, changing market dynamics. Strong demand from renters pushed average asking rents up by 15.2% in San Francisco during the last three years to $3,604 – the highest in the Bay Area. The surge in supply, primarily at the higher-end of the market has caused rents to stabilize and even modestly decrease compared with last year. Across the Bay Area there an estimated 15,000 additional units under construction that are expected to be delivered by 2018.
Source: CBRE Research