Apartment construction is down more than 50% in the Bay Area compared to last year as of July, reflecting ongoing affordability challenges and remote work shifts across the metro coupled with a tight lending environment, according to a new report from RentCafe.
While key urban hubs like Oakland and Berkeley are adding new apartments, construction in the Bay Area has tempered significantly compared to last year, the report states.
San Francisco and San Jose apartment construction is half of what it was last year, a slowdown that pushed the metros off the podium of California’s biggest builders. San Francisco ranks fifth, San Jose seventh in terms apartment construction declines among metros. Overall, in the Bay Area, only 8,216 units are expected to be built by the end of the year.
Some Bay Area details in the report:
- The San Francisco metro has seen 4,175 apartments completed so far this year, 51% fewer than last year.
- Similarly, San Jose saw a 47.8% decline in new units compared to 2024 and is now expecting 2,757 apartments.
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San Francisco is set to complete 1,331 units, Fremont 454 units, Santa Clara 1,543 units and San Jose 865 units, Santa Rosa 347 units and Suisun City 340 new apartments.
Full report here: https://www.rentcafe.com/blog/rental-market/market-snapshots/new-apartment-construction/.
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