CBRE: San Francisco Apartment Rent Growth Affected by New Supply

CBRE research, cbre ea and axiometrics, New Supply, Apartment Rent Growth, CBRE, San Francisco, Bay Area

CBRE research, cbre ea and axiometrics, New Supply, Apartment Rent Growth, CBRE, San Francisco, Bay Area

New apartment supply has surged in San Francisco, with more than 8,000 units delivered since 2011. The volume and concentration of this supply at the higher end of the market has caused occupancy and rent growth to flatten as tenant choice increases and urgency decreases. Average monthly apartment rents were $3,600 per unit in Q2 2016. Approximately 3,000 additional units are expected to complete by year-end 2016, which is likely to keep rents stable to moderately lower.

Source CBRE EA and Axiometrics.

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