the san francisco smaller apartment building market

The San FranciscoSmaller Apartment Building Market

2-4 Unit Multi-Family Buildings

Focusing Mostly on San Francisco County

$0

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$1,000

$1,100

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San Francisco Apartment Building SalesTop 7 Brokers, Multi-Unit Residential Sales* 12 months MLS sales of residential multi-

unit properties, per Broker Metrics*

Multi-Family Residential Property SalesTop 7 Brokers in San Francisco

in Millions of Dollars

* 12 months dollar volume, transaction-side sales reported to MLS by 11/30/19, per Broker Metrics. Compass figures include Paragon, Pacific Union, Alain Pinel and Hill numbers with merger of brokerages.

-- Other San Francisco Brokerages --

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$1,000

$1,100

ColdwellBanker

Vanguard Colliers Zephyr KellerWilliams

Marcus &Millichap

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San Francisco Apartment Building SalesTop 7 Brokers, Multi-Unit Residential Sales* 12 months MLS sales of residential multi-

unit properties, per Broker Metrics*

Multi-Family Residential Property SalesTop 7 Brokers in San Francisco

in Millions of Dollars

* 12 months dollar volume, transaction-side sales reported to MLS by 11/30/19, per Broker Metrics. Compass figures include Paragon, Pacific Union, Alain Pinel and Hill numbers with merger of brokerages.

San Francisco 2-4 Residential Unit BuildingsYear-over-Year Comparisons: Selected Annual Market Indicators

2, 3 & 4 unit residential buildings. Sales reported to MLS, per Broker Metrics. Data from sources deemed reliable, but maycontain errors and subject to revision. 2019 sales are estimates using data available in early 2020: Late reported sales mayalter these numbers. All numbers are approximate. Not all sales are reported to MLS.

Statistic 2016 2017 2018 2019

2 Units: Median Sales Price

$1,795,000 $1,820,000 $1,900,000 $1,900,000

2 Units: Avg. $/Sq.Ft. $697/sq.ft. $716 $791 $779

2- Units: Avg. Days on Mkt 43 days 41 34 39

2-Units: Sales Price to Orig. LP %

106% 108% 103% 104%

2-Units: # of Sales 224 245 256 228

3-4 Units: Median Sales Price

$1,850,000 $2,050,000 $2,156,000 $2,200,000

3-4 Units: Avg. $/Sq.Ft. $541/sq.ft. $589 $617 $637

3-4 Units: Average Days on Market

55 days 53 51 53

3-4 Units: Sales Price to Orig. LP %

103% 103% 100% 100%

3-4 Units: # of Sales 122 133 120 126

2-4 Unit Residential Building Values 2019 Median Sales Prices & Average Dollar per Square Foot

San Francisco District or County 2-Unit Buildings 3-Unit Buildings 4-Unit Buildings

Pacific & Presidio Heights, Cow Hollow &

Marina (District 7)

$3,000,000 -

$999/sq.ft.

$4,259,000 -

$1013/sq.ft.

$3,035,000 -

$725/sq.ft.

Russian, Nob & Telegraph Hills; North Beach

(District 8)

$2,400,000 -

$949/sq.ft.

$2,525,000 -

$673/sq.ft.

$2,250,000 -

$541/sq.ft.

Noe, Eureka & Cole Valleys; Ashbury & Corona

Heights; Mission Dolores (D5)

$2,210,000 -

$897/sq.ft.

$2,200,000 -

$694/sq.ft.

$2,200,000 -

$647/sq.ft.

North of Panhandle (NoPa), Alamo Square,

Hayes Valley, Lower Pacific Heights (D6)

$1,975,000 -

$757/sq.ft.

$2,200,000 -

$617/sq.ft.

Not enough sales for

analysis

Lake Street, Richmond District, Lone

Mountain, Jordan Park (District 1)

$1,990,000 -

$675/sq.ft.

$2,200,000 -

$608/sq.ft.

$2,142,500 -

$531/sq.ft.

Potrero Hill, Bernal Heights, Inner Mission,

South of Market (District 9)

$1,650,000 -

$713/sq.ft.

$1,778,000 -

$541/sq.ft.

$1,884,000 -

$659/sq.ft.

Sunset, Parkside (District 2) $1,495,000 -

$662/sq.ft.


analysis


analysis

Bayview-Excelsior-Visitacion Valley

(District 10)

$1,140,000 -

$481/sq.ft.


analysis


analysis

Alameda County $885,000 –

$458/sq.ft.

$1,065,000 -

$390/sq.ft.

$1,075,000 -

$367/sq.ft.

Sales reported to MLS

* Data from 12 months MLS sales. This analysis was performed in good faith with data derived from sources

deemed reliable, but may contain errors and subject to revision. Mixed used buildings excluded when identified.

Due to the large variety of buildings, these numbers should be considered very approximate.

2-4 Unit Residential Property Sales 2019 Sales, by San Francisco Realtor District

17

10

25

25

14

32

43

58

9

3

6

21

6

16

23

2

4

2

5

6

10

6

12

3

4

5

1

4

5

11

3

Bayview/ Excelsior/Portola (D10)

Hayes Valley/ NoPa/Alamo Square (D6)

Sunset/ Parkside (D2)

Pacific Heights/ Marina/Cow Hollow (D7)

Russian, Nob & TelegraphHills; North Beach (D8)

Richmond District/Lake Street (D1)

Mission, Potrero Hill,Bernal Heights (D9)

Noe, Eureka & ColeValleys (D5)

2-Unit Buildings 3-Unit Buildings 4-Unit Buildings Mixed Use

Data from sources deemed reliable, but may contain errors and subject to revision. All numbers are approximate.

12 months sales reported to MLS

Realtor districts include other adjacent neighborhoods besides those used to identify the district.

San Francisco 2-4 Unit Residential Building Market2019 Sales by Price Segment

11

18

48

37

28

34

29

39

16

10

4

13

8

1110

15

7

19

10

4 4

1 13

4

7

1112

45

221

45

34

32 2

1

Up to $1million

$1m -$1.25m

$1.25m -$1.5m

$1.5m -$1.75m

$1.75m -$2m

$2m -$2.25m

$2.25m -$2.5m

$2.5m -$3m

$3m -$4m

$4m -$5m

$5m+

2-Unit Building Sales 3-Unit Building Sales 4-Unit Building Sales Mixed-Use

“M” signifies millions of dollars. 12 months sales reported to MLS per Broker Metrics. Data fromsources deemed reliable, but subject to error and revision. All numbers are approximate.

San Francisco, 12 Months SalesMedian Sales Prices & Avg. $/Sq.Ft.

2-Unit Bldgs $1.9m $778/sq.ft.3-Unit Bldgs $2.2m $654/sq.ft.4-Unit Bldgs $2.1m $609/sq.ft.

Mixed Use $1.75m $610/sq.ft.


Median Sales Price Trends since 2011 in Thousands of Dollars

2-4 Unit Residential: San Francisco, Santa Clara, Alameda Counties

$283

$550

$1,106

$956

$335

$677

$1,200

$1,001

$450

$814

$1,425

$1,300

$549

$902

$1,673

$1,433

$610

$1,000

$1,800

$1,565

$730

$1,125

$1,850

$1,795

$802

$1,300

$2,050

$1,820

$866

$1,480

$2,156

$1,900

$950

$1,450

$2,200

$1,900

Alameda 2-4 UnitBuildings

Santa Clara 2-4 UnitBuildings

San Francisco 3-4 UnitBuildings

San Francisco 2-UnitBuildings

2011 2012 2013 2014 2015 2016 2017 2018 2019


Sales reported to MLS. These prices are generalities reflecting sales of a wide variety of buildings in locations ofdiffering values. Data from sources deemed reliable, but may contain errors and subject to revision. Allnumbers should be considered approximations.

Median Sales Prices in Thousands of Dollars

Average Dollar per Square Foot Values since 20112-4 Unit Residential Buildings: San Francisco & Alameda Counties

$148

$328

$388

$170

$364 $411

$220

$422

$511

$262

$478

$569

$294

$532

$652

$341

$541

$697

$387

$589

$716

$415

$617

$791

$432

$637

$779

Alameda 2-4 Unit Buildings San Francisco 3-4 Unit Buildings San Francisco 2-Unit Buildings

2011 2012 2013 2014 2015 2016 2017 2018 2019


Sales reported to MLS. These values are generalities reflecting sales of a wide variety of buildings in locations ofdiffering values. Data from sources deemed reliable, but may contain errors and subject to revision. All numbersshould be considered approximations.

Average Dollar per Square Foot Values by Year

In San Francisco, 2-units sell at a premium due to condo

conversion rules.

79 79

70

48 48

38

4341

34

39

96 97

68

55 54 54 5553

5153

0

10

20

30

40

50

60

70

80

90

100

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

2-Units 3-4 Units

These analyses were performed in good faith with data derived from sources deemed reliable, butmay contain errors and are subject to revision. All numbers to be considered approximate.

Average Days on Market until Acceptance of Offer

San Francisco Multi-Unit Residential Sales since 2010 Per MLS sales data

| Bottom of market |

| 2012 Market recovery →

23%

20%

35%

51%

48%

59%

51%

57%

63%

59%

19%

23%

31%

45%43%

53%

44%46%

40%

50%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SF 2 Unit Buildings SF 3-4 Unit Buildings

The selling period refers to the time between a listing coming on market and accepting an offer. These analyseswere performed in good faith with data derived from sources deemed reliable, but may contain errors and aresubject to revision. All numbers to be considered approximate.

% of Sales Selling Within 30 Days of Coming on Market

San Francisco Multi-Unit Residential Sales since 2010 Per MLS sales data

| 2009 – 2011 |Bottom of market

| 2012 Market recovery ➔

200

300

400

500

600

700

800

900

1000

Over the past 25 years, the condo and TIC conversionoption first increased sales, but ultimately reduced theinventory of unconverted 2-4 unit buildings to sell. Inrecent years, condo and TIC conversion has sloweddue to new city laws designed to discourage tenantevictions. These factors have reduced sales volumes.

Dotcom bubble pops ↑ 2008 market crash↑

Sales reported to MLS. Data from sources deemed reliable, but may contain errors and is subject to revision. All numbers should be considered approximate.


San Francisco Residential 2-4 Unit Building Sales

Annual Number of Buildings Sold since 1995

143

171

205

221

228

209

189

199

215

183

140144

185

197193

225222

196199

233

250

223

192

179

192195

192

224 222 220214

230

237

206

177

100

120

140

160

180

200

220

240

Activity reported to MLS, per Broker Metrics. Data from sources deemed reliable but may contain errors and subject to revision. All numbers should be considered approximate.

San Francisco 2-4 Unit Building Market Dynamics

Seasonality: Active Listings on Market within Month

SpringSpring

Autumn

Autumn

Mid-Winter

Spring

Autumn

Mid-Winter

3028

35

28

50

46

43

39

42

56

37

26

29

46

41

51

4240

33

43

39

45

32

1816

36

40

49

46

58

39

35

38

30

39

10

15

20

25

30

35

40

45

50

55

60



Seasonality: Unit Building Sales by Month

Sales closed in one month generallyreflect new listings and accepted-offeractivity in the 2 previous months.

Mid-Winter

Mid-Winter

Spring

Autumn

Autumn

Spring

101

127122

66

110112

125

96

129123

112

81

11098

118

82

107

60

70

80

90

100

110

120

Q4

20

19

Q3

20

19

Q2

20

19

Q1

20

19

Q4

20

18

Q3

20

18

Q2

20

18

Q1

20

18

Q4

20

17

Q3

20

17

Q2

20

17

Q1

20

17

Q4

20

16

Q3

20

16

Q2

20

16

Q1

20

16

Q4

20

15

As reported to MLS, per Broker Metrics. All numbers are approximate and subject to revision.

San Francisco 2-4 Unit Building MarketUnit Sales, 2015 – Present, by Quarter

Seasonal fluctuations are common. Longer-term trends are more meaningful than

short-term changes.

San Francisco Multi-Unit Residential Pricing Analysis

Sales of 2-4 Unit Buildings, With & Without Price Reductions

106% of LP

38

100%

92% 93 days 92%

Avg. Sales Price to OriginalList Price Percentage

Avg. Days on Marketto Offer Acceptance

Dollar per Square FootDifferential

2-4 Unit Buildings: No Price Reduction 2-4 Unit Buildings: 1+ Price Reductions

No price cut prior to sale



The sales price to list price and days on market analyses were based upon 3 years of sales through Q1 2019, averaging Broker Metrics quarterly data. The dollar per square foot analysis was based on an analysis of 12 months sales ending 6/21/19. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers are approximate.

Sales reported to MLS, per Broker Metrics

Price cut prior to sale


2-4 units requiring price reduction before sellingaveraged a sales price 8% below original listprice, while those selling without reductionaveraged 6% over. No Sale

2-4 units requiring price reductionaveraged almost 8 weeks longer onmarket to acceptance of offer.

2-4 unit buildings requiring price reductionbefore selling averaged a dollar per squarefoot value 8% below those selling withoutprice reduction.


$1,010

$1,340

$1,585

$1,874

$2,314

$1,948

$1,728

$1,877

$2,034

$2,326

$2,219

$2,663

$2,790

$3,057

$3,458

$3,620

$3,327 $3,376 $3,441

$3,505

$1,000

$1,250

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

$3,000

$3,250

$3,500

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Average Residential Asking RentQ1 Data Points

Except as Noted

↑ Dotcom bubble pops

Per RealFacts LLC & Zillow Rent index

1st quarter data points except, as noted for last reading - per RealFacts LLC, for buildings with atleast 50 units. 2017-onward estimated using Zillow Rent Index data(https://www.zillow.com/research/data/#rental-data). Data from sources deemed reliable butmay contain errors and subject to revision. All numbers are approximate.

Dotcom peak →

↑ 2008 financial markets crash

↑ 2012 recovery

San Francisco Residential Rents - Estimated

Weighted Average Asking Rent, Q1 Data Points, 1994 - Present

Last reading per Sept. -Nov. 2019 data

https://www.zillow.com/research/data/#rental-data

$1,000

$1,250

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

$3,000

$3,250

$3,500

$3,750

$4,000

2011-02

2011-05

2011-08

2011-11

2012-02

2012-05

2012-08

2012-11

2013-02

2013-05

2013-08

2013-11

2014-02

2014-05

2014-08

2014-11

2015-02

2015-05

2015-08

2015-11

2016-02

2016-05

2016-08

2016-11

2017-02

2017-05

2017-8

2017-11

2018-2

2018-5

2018-8

2018-11

2019-02

2019-05

2019-08

2019-11

San Francisco

San Mateo

Santa Clara

Alameda

Contra Costa

Estimated Median List Apartment Rents

Bay Area Counties since 2011

Per Zillow rental data by month: https://www.zillow.com/research/data/#rental-data. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers to be considered approximate.

Data per Zillow Research, 5+ unit buildings through November 2019

Longer-term trends are much more meaningful than short-term fluctuations.

Marin County’s median list rent has recently been similar to that of Santa Clara County.

San Francisco has the highest median list rents in the nation.

Updated through November 2019


$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

$5.5

2010-10

2011-04

2011-10

2012-04

2012-10

2013-04

2013-10

2014-04

2014-10

2015-04

2015-10

2016-04

2016-10

2017-04

2017-10

2018-04

2018-10

2019-04

2019-10

San Francisco

Santa Clara County

Alameda County

Median List Rental Price per Square Foot

San Francisco, Santa Clara, Alameda Counties since 2010

Per Zillow rental data by month: https://www.zillow.com/research/data/#rental-data. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers to be considered approximate.

Data per Zillow Research, 5+ unit buildings

Longer-term trends are much more meaningful than short-term fluctuations.

Updated through November 2019


Median List Rent per Square FootSelected Bay Area Counties

$3.04 $3.12

$3.34

$3.70

$4.72

$3.88 $3.78

$3.86

$4.45

$5.49

$4.98

$4.45

$5.06

$5.98

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

Alameda Santa Clara Marin San Mateo San Francisco

2-Bedroom Apt. 1-Bedroom Apt. Studio Apt.

Data per Zillow Research

From Zillow Research, May-August 2019 monthly average: https://www.zillow.com/research/data/#rental-data.Data from sources deemed reliable, but may contain errors and is subject to revision. Unit size and quality mayvary by county. All numbers should be considered approximations.

N/A

The smaller the unit, the higher the rent per square foot. Smallerunits turn over more often, which can be good or bad forlandlords, depending on demand (vacancy rates), appreciationtrends and rent-control laws.


$2,000

$2,250

$2,500

$2,750

$3,000

$3,250

$3,500

$3,750

$4,000

$4,250

$4,500

$4,750

$5,000

20

12

-01

20

12

-04

20

12

-07

20

12

-10

20

13

-01

20

13

-04

20

13

-07

20

13

-10

20

14

-01

20

14

-04

20

14

-07

20

14

-10

20

15

-01

20

15

-04

20

15

-07

20

15

-10

20

16

-01

20

16

-04

20

16

-07

20

16

-10

20

17

-01

20

17

-04

20

17

-7

20

17

-10

20

18

-01

20

18

-04

20

18

-7

20

18

-10

20

19

-01

20

19

-04

20

19

-07

2-Bedroom Unit

1-Bedroom Unit

Studio Apartment

San Francisco Median List Rents

by Unit Size (Bedroom Count) since 2012

Per Zillow Research, median list rental data by month: https://www.zillow.com/research/data/#rental-data . Data

from sources deemed reliable, but may contain errors and subject to revision. All numbers are approximate.

Data per Zillow Research through August 2019

Median list rents can be affected by other factors besides changes in actual lease rates. Longer-term trends are much more meaningful than short-term fluctuations.


Ebbs & Flows in SF Housing Construction

New-Construction Housing Units Completed by Year

532

909

1225

1859

1619

2260

2730

1780 1675

2197

3019

3366

1082

348

794

2330

3454

2472

4895

4270

2350

4300

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Analysis includes condos, houses, rental apartment units, affordable housing, student and senior housing andunits in social housing projects. Data from sources deemed reliable, but may contain errors and subject torevision. All numbers to be considered general approximations.

Per SF Planning Dept. Housing Inventory Report and other sources

Construction begins to pick up after early-nineties recession (following late-eighties boom)

Construction plunges following 2008 financial markets crash →

New construction includes condos, apartments,student, social and affordable housing. Approximately680 affordable housing units were added in 2019.

| 2012 Market recovery

Approx. 4000 newunits are projected tobe completed in 2020.

Alameda County 2-4 Unit Building MarketAverage Dollar per Square Foot Values & Median Sales Prices

$148

$283

$170

$335

$220

$450

$262

$549

$294

$610

$341

$730

$387

$802

$415

$866

$432

$950

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

Alameda 2-4 Unit BuildingsAverage Dollar per Square Foot Value

Alameda 2-4 Unit BuildingsMedian Sales Price in Thousands

2011 2012 2013 2014 2015 2016 2017 2018 2019

Residential 2-4 unit building sales reported to MLS

Sales reported to MLS. These values are generalities reflecting sales of a wide variety of buildings in locations of

differing values. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers

should be considered approximations.


Median Sales Prices by Year in Thousands of Dollars

Sonoma County 2-4 Unit Building MarketAverage Dollar per Square Foot Values & Median Sales Prices

$155

$350

$187

$392

$251

$555

$273

$575

$295

$588

$316

$668

$387

$705

$389

$750

$-

$100

$200

$300

$400

$500

$600

$700

Sonoma 2-4 Unit BuildingsAverage Dollar per Square Foot Value

Sonoma 2-4 Unit BuildingsMedian Sales Price in Thousands

2012 2013 2014 2015 2016 2017 2018 2019







San Mateo County 2-4 Unit Building MarketAnnual Sales Volume & Median Sales Prices

219

595

231

$700

222

$821.5

226

$961

192

$1,150

185

$1,280

174

$1,382

163

$1,585

147

$1,595

0

200

400

600

800

1,000

1,200

1,400

1,600

San Mateo 2-4 Unit BuildingsNumber of Sales

San Mateo 2-4 Unit BuildingsMedian Sales Price in Thousands

2011 2012 2013 2014 2015 2016 2017 2018 2019





Annual Number of Sales


Santa Clara County 2-4 Unit Building MarketAnnual Sales Volume & Median Sales Prices

452

550

446

$677

440

$814

429

$902

382

$1,000

341

$1,125

401

$1,300

321

$1,480

297

$1,454

0

200

400

600

800

1,000

1,200

1,400

Santa Clara 2-4 Unit BuildingsNumber of Sales

Santa Clara 2-4 Unit BuildingsMedian Sales Price in Thousands

2011 2012 2013 2014 2015 2016 2017 2018 2019





Annual Number of Sales


Marin County 2-4 Unit Building MarketAverage Dollar per Square Foot Values & Median Sales Prices

$330

$750

$412

$833

$498

$1,035

$505

$965

$549

$1,148

$602

$1,550

$622

$1,340

$624

$1,220

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

Marin 2-4 Unit BuildingsAverage Dollar per Square Foot Value

Marin 2-4 Unit BuildingsMedian Sales Price in Thousands

2012 2013 2014 2015 2016 2017 2018 2019







Because Marin does not have that many sales of 2-4 unit buildings andthose sales are spread across a wide variety of locations and buildings,anomalous fluctuations sometimes occur in the annual value statistics.

The charts following will not be updated until the Q1 2020 Report, though the data is still pertinent to the market.

Average Days on MarketSan Francisco 2-4 Unit Buildings, by Quarter

414153423937484366427156624047415420

30

40

50

60

70

Q3

20

19

Q2

20

19

Q1

20

19

Q4

20

18

Q3

20

18

Q2

201

8

Q1

20

18

Q4

20

17

Q3

20

17

Q2

20

17

Q1

20

17

Q4

201

6

Q3

20

16

Q2

20

16

Q1

20

16

Q4

20

15

Q3

20

15

Based on sold properties. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers are approximate.

The lower the average days on market, thefaster buyers are reacting to new listings.

Based upon MLS activity, per Broker Metrics

Spring2017

Spring2018

Summer2017

Summer2018

Spring2019

Summer2019

Spring2016

Summer2016

Sales Price to Original List Price PercentageSan Francisco 2-4 Unit Buildings, by Quarter

95.0%

97.5%

100.0%

102.5%

105.0%

Q3

20

19

Q2

20

19

Q1

20

19

Q4

20

18

Q3

20

18

Q2

20

18

Q1

20

18

Q4

20

17

Q3

20

17

Q2

20

17

Q1

20

17

Q4

20

16

Q3

20

16

Q2

20

16

Q1

20

16

Q4

20

15

Q3

20

15


A percentage over 100% reflects an averagesales price over the original asking price.Higher percentages reflect overbidding.

Based upon MLS activity, per Broker Metrics

Spring

Spring2017

Spring2018

Autumn

Autumn

Autumn2017

Autumn2018

Spring2019

Summer2019

Percentage of Listings Accepting OffersSan Francisco 2-4 Unit Building Market

25.0%

27.5%

30.0%

32.5%

35.0%

37.5%

40.0%

42.5%

45.0%

47.5%

Q3

20

19

Q2

20

19

Q1

20

19

Q4

20

18

Q3

20

18

Q2

20

18

Q1

20

18

Q4

20

17

Q3

20

17

Q2

20

17

Q1

20

17

Q4

20

16

Q3

20

16

Q2

20

16

Q1

20

16

Q4

20

15

Q3

20

15


The higher the percentage of listingsaccepting offers, the stronger the buyerdemand as compared to the supply ofproperties available to purchase.

Based upon MLS activity; per Broker Metrics

Spring2018

Autumn2017

Autumn2018

Spring2019

Summer2019

Spring2017

Spring2016

Autumn2016

Summer2018

49

65

74

64 64

42

49

66

74

40

17

62

78

6266

83

62

4648

99

71

44

21

5046 45

0

10

20

30

40

50

60

70

80

90

100



Seasonality: New Listings Coming on Market

Spring

Spring

Autumn

Autumn

San Francisco Apartment Building Market: 2-4 Units

Listings Accepting Offers within Quarter

60

70

80

90

100

110

120

130

140

150

Q1

20

12

Q2

20

12

Q3

20

12

Q4

20

12

Q1

20

13

Q2

20

13

Q3

20

13

Q4

20

13

Q1

20

14

Q2

20

14

Q3

20

14

Q4

20

14

Q1

20

15

Q2

20

15

Q3

20

15

Q4

20

15

Q1

20

16

Q2

20

16

Q3

20

16

Q4

20

16

Q1

20

17

Q2

20

17

Q3

20

17

Q4

20

17

Q1

20

18

Q2

20

18

Q3

20

18

Q4

20

18

Q1

20

19

Q2

20

19

Data from sources deemed reliable, but may contain errors and subject to revision.

Based upon MLS activity. All numbers approximate and subject to revision.

2-4 unit buildings, MLS listing activity, per Broker Metrics.

$2,219

$2,299

$2,663

$2,790

$3,057

$3,458

$3,620

$3,327 $3,376

$3,495

$2,219 $2,230

$2,272 $2,316 $2,339

$2,383 $2,421

$2,475 $2,505 $2,570

$2,000

$2,200

$2,400

$2,600

$2,800

$3,000

$3,200

$3,400

$3,600

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Market Rate Average Asking Rent*

Allowable Rent for Rent-Controlled Units**

Estimates per RealFacts LLC, Zillow Research and the SF Rent Board

* 1st quarter market-rate average asking rents using RealFacts LLC for 50+ unit buildings and Zillow Research data;2019 Q1 market rent estimated based on late 2018 data. ** Rent increases from 2010 per SF Rent Board annualallowable rent increase percentages; 2019 figure incorporates 3/1/19 allowable rent increase. Data from sourcesdeemed reliable but may contain errors and subject to revision. Numbers to be considered very approximateestimates for illustrative purposes only.

San Francisco Residential Rents

Average Asking Rents vs. Rents under Rent Control

Comparison between San Francisco apartments 1st rented inQ1 2010 at market rate, with rent increases based on 1)market rate appreciation*, or 2) Rent Board allowable annualincreases for rent-controlled units.**

Approx. $925/month difference = annual rent disparity of $11,100

Q1 2019estimate

$1

,89

4,0

00

$1

,99

7,5

00

$1

,94

2,5

00

$1

,90

0,0

00

$1

,87

5,0

00

$1

,90

0,0

00

$2

,06

7,5

00

$1

,83

5,0

00

$1

,75

5,0

00

$1

,97

5,0

00

$1

,70

4,7

72

$1

,81

4,0

00

$1

,61

2,5

00

$1

,87

0,0

00

$1

,85

0,0

00

$1

,60

5,0

00

$1,500,000

$1,550,000

$1,600,000

$1,650,000

$1,700,000

$1,750,000

$1,800,000

$1,850,000

$1,900,000

$1,950,000

$2,000,000

$2,050,000

$2,100,000

Q3

20

19

Q2

20

19

Q1

20

19

Q4

20

18

Q3

20

18

Q2

20

18

Q1

20

18

Q4

20

17

Q3

20

17

Q2

20

17

Q1

20

17

Q4

20

16

Q3

20

16

Q2

20

16

Q1

20

16

Q4

20

15

Median sales price is that price at which half the sales occurred for more and half for less. It is a verygeneral statistic that can be affected by other factors besides changes in fair market value. All numbers areapproximate and subject to revision.

San Francisco 2-Unit Building PricesMedian Sales Prices, 2015 – Present, by Quarter As reported to MLS,

per Broker Metrics

Quarterly fluctuations are common. Longer-term trends are more meaningful than short-term changes.

$2

,35

0,0

00

$2

,20

0,0

00

$1

,98

0,0

00

$2

,25

0,0

00

$2

,20

0,0

00

$2

,31

5,0

00

$2

,16

7,5

00

$1

,82

5,0

00

$2

,11

2,5

00

$2

,12

6,5

00

$2

,46

7,5

00

$2

,00

0,0

00

$1

,97

5,0

00

$1

,92

9,0

00

$1

,73

7,5

00

$1

,85

0,0

00

$1,600,000

$1,700,000

$1,800,000

$1,900,000

$2,000,000

$2,100,000

$2,200,000

$2,300,000

$2,400,000

$2,500,000

Q3

20

19

Q2

20

19

Q1

20

19

Q4

20

18

Q3

20

18

Q2

20

18

Q1

20

18

Q4

20

17

Q3

20

17

Q2

20

17

Q1

20

17

Q4

20

16

Q3

20

16

Q2

20

16

Q1

20

16

Q4

20

15

Median sales price is that price at which half the sales occurred for more and half for less. It is a verygeneral statistic that can be affected by other factors besides changes in fair market value. All numbers areapproximate and subject to revision.

San Francisco 3-Unit Building PricesMedian Sales Prices, 2015 – Present, by Quarter As reported to MLS,

per Broker Metrics

Quarterly fluctuations are common. Longer-term trends are more meaningful than short-term changes.

0

50

100

150

200

250

Before1900 1900 - 1919

1920 - 19391940 - 1959

1960 - 19791980 - 1999

2000+

23

238

86

52

30

13

2

Sales reported to MLS. These analyses were performed in good faith with data derived from sources deemed

reliable, but they may contain errors and are subject to revision. All numbers should be considered approximate.

San Francisco Residential 2-4 Unit BuildingsSales by Era of Construction in 2018


Period of Construction

Victorian & Edwardian buildings =

59% of sales

Spanish-Med, Art Deco &

Marina Style =19% of sales

Approximately 78% of San Francisco residential 2-4unit property sales are of buildings constructed priorto the beginning of World War ll. From 1960 to 1980,the city’s population declined. It started to increaseagain after 1980, but new housing constructionshifted decisively to condos.

San Francisco Multi-Unit Residential Building Market 2018 Sales Review by Unit Count

268

79

48

78

47

Estimated totals for 2018 based on sales reported to MLS by 12/26/18. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers, prices and values should be considered

approximate.

Approximate number of building sales by unit count. Includes some mixed-use

properties in larger buildings.

2-unit buildings

3-unit buildings

4-unit buildings

5-8 unit buildings

9-15 unit buildings

16+ unitsSan Francisco’s residential

investment market is dominated by the sale of

smaller buildings.

Median sales price: $1,900,000; Avg. $/sq.ft.: $789





Note that the quantity of sales in any given local submarket is usually relatively small and/or the number of sales that report thenecessary financial information can be limited. Buildings of different ages, qualities and sizes selling in different periods can causethese average and median figures to fluctuate significantly. Furthermore, the reliability of some of these calculations dependsupon the quality of the income and expense figures provided by the listing agents, and sometimes instead of actual numbers,much less meaningful projected or scheduled figures are used. Therefore, the above statistics should be considered very generalindicators, and how they apply to any particular property without a specific comparative market analysis is unknown. If you wouldlike such a specific analysis, please contact me.

These analyses were made in good faith with data from sources deemed reliable, but they may contain errors and are subject torevision. Statistics are generalities and all numbers should be considered approximate.

Compass is a real estate broker licensed by the State of California, DRE 01527235. Equal Housing Opportunity. This report has beenprepared solely for information purposes. The information herein is based on or derived from information generally available tothe public and/or from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy orcompleteness of the information. Compass disclaims any and all liability relating to this report, including without limitation anyexpress or implied representations or warranties for statements contained in, and omissions from, the report. Nothing containedherein is intended to be or should be read as any regulatory, legal, tax, accounting or other advice and Compass does not providesuch advice. All opinions are subject to change without notice. Compass makes no representation regarding the accuracy of anystatements regarding any references to the laws, statutes or regulations of any state are those of the author(s). Past performanceis no guarantee of future results.

© 2019 Compass

the san francisco smaller apartment building market

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