While many U.S. cities are shifting housing away from their downtowns, the Bay Area stands out as one of the few areas adding living space in urban cores, according to a new report from RentCafe.
San Francisco added 7,503 new downtown apartments between 2020 and 2024 — with 75.3% of the city’s new apartment construction this decade taking place in the downtown area. That ranked 13th in the nation.
This continues a consistent pattern: in the previous decade (2010–2019), 75% of San Francisco’s apartment construction was also located downtown. While adaptive reuse has declined — from 13.3% to 3.3% of new downtown units — the overall focus on building in the city center has remained steady.
Oakland saw 5,469 units built downtown during the same period, or 62%. That ranked 20th in the country. San Jose saw 64% of new units built downtown from 2020 to 2024. Silicon Valley’s largest city has been a busy downtown builder in part to its fee-waiving programs set in place by the city, as well as other benefits for developers.
The downtown construction is a sign that the region is ahead of the curve when it comes to revitalizing downtown areas, with more people choosing hybrid work over fully remote, according to RentCafe.
Key San Francisco findings:
- San Francisco ranks in the top tier nationally for the share of new construction in its downtown with over 7,500 new units built here since the start of the decade.
- 3 out of 4 new apartments built since 2020 are located in the city’s core.
- Converted units now make up a smaller share of downtown construction compared to a decade ago, but the potential remains strong.
- As cities across the country grapple with post-pandemic downtown recovery, San Francisco stands out for holding the line on core-focused housing.
The full report is here: https://www.rentcafe.com/blog/rental-market/market-snapshots/downtown-apartment-construction/.
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