July 2026: Q2 San Francisco Apartment Insider
San Francisco Apartment Market Update: Rents, Multifamily Values and Legislation
As we near the end of July, San Francisco continues to strengthen when it comes to rents, multifamily values and demand for available rental units.
Before getting into the numbers, let’s look at local and statewide legislation that could have an impact on San Francisco apartment building owners and investors.
California AB 2042 and Unlawful Detainer Proceedings
First, let’s look at Sacramento.
AB 2042 is proposed legislation that could give defendants new opportunities to vacate a judgment or delay unlawful detainer proceedings that were properly adjudicated.
The core issue in the legislation is: What happens when a tenant claims they never received notice of the lawsuit?
The proposed language would afford a defendant another “bite at the apple” in a case that was properly processed and adjudicated.
AB 2042 has passed the California Assembly and is currently under consideration in the Senate.
For owners of San Francisco rental housing, this is legislation worth watching because of its potential implications for the unlawful detainer process.
Proposed San Francisco Transfer Tax Reduction
To encourage residential development, generate jobs and energize The City’s downtown economy, the mayor is proposing the Balanced Update to Incentivize Local Development Act.
Revealed in late February, the proposal would cut transfer taxes in half on property transactions of $10 million or more, returning rates to what they were before San Francisco voters doubled them through Proposition I in 2020.
Legislation regarding the proposed transfer-tax cut is awaiting a Board of Supervisors committee hearing.
Under the proposal:
Properties from $10 million to $25 million would see the transfer tax rate drop from 5.5% to 2.75%.
Properties valued at $25 million or more would see the rate drop from 6% to 3%.
For larger San Francisco apartment buildings and other investment properties, these proposed changes could have a meaningful impact on transaction costs.
San Francisco’s Proposed “No Hidden Rent Act”
In another instance of a local politician with a solution looking for a problem, Supervisor Bilal Mahmood introduced a bill called the “No Hidden Rent Act,” which he said is designed to “bring transparency, fairness and accountability to San Francisco’s rental market.”
The Act would require landlords to disclose the true total cost of renting in online advertisements before tenants sign a lease.
Under the proposed legislation, property owners would be required to advertise the “total estimated cost” in the “same font and placement” as the base rent. The same information would also have to appear on the first page of the lease.
Each fee would have to be itemized with a “clear explanation of their purpose and amount.” Rental listings would also include application fees and screening fees.
Owners and property managers should follow the legislation as it moves through the local legislative process.
San Francisco Evictions Reach a 10-Year High
According to Sheriff’s Office data, San Francisco evictions hit a 10-year high in 2025.
In 2023—the year the city lifted its ban on COVID-related evictions—there were 804 “lockouts,” the term the sheriff uses for physically evicting people from their homes.
In 2025, that number had jumped 15% to 924.
There have been 352 lockouts in 2026, putting the city on track for more than 960 evictions this year.
San Francisco Rents Have Increased 22%
On to rents in San Francisco.
In short, rents have increased 22% since June 2025—the largest rent increase in the country.
The median monthly rent for a one-bedroom unit in San Francisco has reached $4,000, while two-bedroom units have hit $5,700.
For two-bedroom units, San Francisco has the highest rent in the country. One-bedroom rents are second only to Manhattan, where they reach $4,660.
The continued strength in rents is an important consideration for San Francisco apartment building owners and multifamily investors evaluating rental income, operating performance and apartment building values.
San Francisco Neighborhoods With the Highest Rents
The neighborhoods with the most expensive one-bedroom rents are clustered around downtown job centers: SoMa, Mission Bay, South Beach and Dogpatch.
Mission Bay has the city’s most expensive one-bedroom apartments, at nearly $5,500 per month. SoMa follows at $5,100.
SoMa also recorded one of the largest annual increases, at nearly 42%.
The concentration of rent growth around downtown employment centers is particularly noteworthy for owners and investors evaluating San Francisco multifamily real estate.
Oakland Rents Are Rising Again
Across the Bay, Oakland rents are rising again after declining since COVID.
Oakland recorded the second-highest price growth among the 100 largest U.S. cities.
The median asking rent for a one-bedroom home in Oakland was approximately $2,000 in June 2026, nearly 5% higher than the inflation-adjusted median of $1,910 in June 2025.
What This Means for San Francisco Apartment Building Owners and Investors
The San Francisco apartment market continues to present a mix of strengthening fundamentals and an active legislative environment.
Rising rents and demand for available rental units are positive developments for apartment building owners and investors. At the same time, proposed changes involving unlawful detainers, rental-fee disclosures and transfer taxes deserve close attention.
For owners considering a sale, acquisition, refinancing or 1031 exchange in San Francisco, understanding both property-level fundamentals and the broader legislative environment remains essential.
On to the numbers for the quarter.
About the Author
Scott Whelan provides San Francisco multifamily sales, marketing and advisory services. His work centers on pricing strategy, market positioning, and identifying opportunities for investors and owners.
For detailed comps, off-market opportunities, or a property-specific analysis, contact Scott Whelan directly.