San Francisco Apartment Sales Q3 2026: The Busiest Third Quarter Since 2015
Updated: Oct 10
By Kevin Caravelli and Steve Caravelli, Caravelli Group, Coldwell Banker Commercial. Published October 2026. Covers closed sales of San Francisco apartment buildings with 5+ units from July 1 to September 30, 2026.
San Francisco just had its busiest third quarter for Apartment Building Sales since at least 2015: 61 buildings of 5+ units sold from July through September 2026, for $271.9 million. That's 42% more sales than Q3 2025, and prices kept climbing: the average was $395,422 per unit, up 7.4% from a year ago, and the average Cap Rate compressed to 5.43%.
Key findings
Busiest Q3 since 2015: 61 sales, the most in any third quarter in our data, which goes back to 2015.
61 sales for $271.9 million: 42 buildings of 5–11 units sold for $115.5 million, and 19 buildings of 12+ units sold for $156.5 million. Three portfolio sales accounted for 11 of the buildings and $75.9 million.
Up from a year ago: sales rose 42% and volume rose 30% compared with Q3 2025 (43 sales, $208.3 million).
Small buildings surged: sales of 5–11 unit buildings jumped 62% from Q3 2025, their volume nearly doubled, and their average price rose 17% to $415,884 per unit.
Down from Q2: sales fell 25% and volume fell 33% from Q2 2026 (81 sales, $407.6 million), the same summer dip as last year, when sales fell from 58 in Q2 2025 to 43 in Q3.
Prices up: the average was $395,422 per unit (median $380,000) and $474 per square foot. Year over year, the average Price per Unit rose 7.4% and Price per Square foot rose 20%.
Cap Rates at a new low: the average Cap Rate was 5.43%, down from 6.01% in Q3 2025 and the lowest quarterly average since Q2 2023.
Rents up 13%: the citywide average rent reached about $3,964 a month at the end of August, up nearly 13% from $3,518 a year earlier.
Borrowing got more expensive: the Federal Reserve raised its benchmark rate to 3.75%–4.00% on September 16, and the 10-year Treasury topped 5% in mid-September.
Most expensive district: District 7 (Marina, Pacific Heights, Cow Hollow) at $576,417 per unit and a 4.35% average cap rate.
Most active area: District 8 North of California Street (Nob Hill, Russian Hill, Telegraph Hill) with 17 sales.
Largest sale: 973 Market Street in SOMA, $19,000,000 for 69 units.
Highest price per unit: 2901 Buchanan Street in Cow Hollow, $6,626,000 for 9 units ($736,222 per unit), 6% over asking.
Year to date: 187 buildings sold for about $848 million in the first nine months of 2026, up from 143 buildings and $642 million in the same period of 2025.
Q3 2026, question by question
How many Apartment buildings sold in San Francisco in Q3 2026?
61 apartment buildings with 5 or more units sold from July through September 2026, totaling 779 units and $271.9 million. 42 were 5–11 unit buildings and 19 had 12 or more units. The median sale was $3 million.
Was Q3 2026 a busy quarter for San Francisco Apartment sales?
Yes. 61 sales made it the busiest third quarter since at least 2015, ahead of 50 in Q3 2019 and 43 in Q3 2025.
Year | Apartment buildings sold in Q3 (5+ units) |
2026 | 61 |
2025 | 43 |
2024 | 36 |
2023 | 21 |
2022 | 30 |
2021 | 35 |
2020 | 19 |
2019 | 50 |
2018 | 36 |
2017 | 35 |
2016 | 33 |
2015 | 34 |
How does Q3 2026 compare with earlier quarters?
Q3 was slower than Q2 but well ahead of a year ago, and the price per unit has held near $390,000 or higher for four straight quarters while Cap Rates kept falling.
Quarter | Sales | Volume | Avg per Unit | Cap Rate |
Q3 2026 | 61 | $271.9M | $395,422 | 5.43% |
Q2 2026 | 81 | $407.6M | $391,082 | 5.46% |
Q1 2026 | 46 | $170.8M | $387,922 | 5.82% |
Q4 2025 | 101 | $482.6M | $400,809 | 5.86% |
Q3 2025 | 43 | $208.3M | $368,189 | 6.01% |
Quarter | Per Sq Ft | GRM | Sale-to-list |
Q3 2026 | $474 | 11.93 | 96.8% |
Q2 2026 | $502 | 11.77 | 99.2% |
Q1 2026 | $461 | 11.48 | 98.0% |
Q4 2025 | $486 | 11.31 | 99.8% |
Q3 2025 | $396 | 10.85 | 96.8% |
What did San Francisco Apartment buildings sell for per unit in Q3 2026?
The average was $395,422 per unit and the median was $380,000, both higher than a year ago. Buildings of 5–11 units averaged $415,884 per unit while buildings of 12+ units averaged $350,189. By district, prices ranged from $272,917 per unit in District 8 South of California Street to $576,417 in District 7(Marina, Cow Hollow, Pac Heights).
Which San Francisco Apartment buildings are selling fastest?
Smaller ones. Sales of 5–11 unit buildings jumped 62% from Q3 2025, to 42, the most in any third quarter since at least 2015, and their dollar volume nearly doubled. They averaged $415,884 per unit, up 17% from a year ago. Private investors, 1031 exchange buyers and first-time apartment owners create a deep buyer pool in this segment.
The 12+ unit segment had a steady quarter after a strong spring: 19 buildings for $156.5 million. Its average price per unit came in below last year, mostly because of which buildings sold, including a Tenderloin portfolio of small units that traded around $200,000 per unit. Measured per square foot, larger buildings are up 14% so far this year.
What are Apartment Cap Rates in San Francisco in 2026?
The average cap rate in Q3 2026 was 5.43%, across the 48 sales with reported income. That is the lowest quarterly average since Q2 2023 (5.30%), and down from a peak of 6.32% in Q3 2024. Buildings of 12+ units averaged 5.29% and 5–11 unit buildings averaged 5.48%.
Are San Francisco Apartment buildings selling over asking?
Sometimes. The average sale-to-list ratio was 96.8%, and 14 of the 61 sales (23%) closed above the asking price. The biggest premium was 280 Green Street in Telegraph Hill, a vacant 6-unit building that sold for $3,350,000 on a $2,600,000 list price, 29% over asking.
How many San Francisco Apartment buildings sell off-market?
About 28% of Q3 2026 sales happened without a public listing. 53% of 12+ unit buildings and 17% of 5–11 unit buildings, most of which happened in portfolio sales.
How did portfolio sales affect Q3 2026?
Three portfolio sales made up 11 of the quarter's 61 sales and $75.9 million, about 28% of Q3 volume:
July: a five-building portfolio in the Tenderloin and Eureka Valley, $50.4 million for 201 units.
August: a three-building portfolio in the Inner Sunset and NOPA, $6.7 million for 16 units.
August: a three-building portfolio in Eureka Valley and Downtown, $18.8 million for 56 units.
Portfolio buyers price several buildings together, so per-unit prices on these sales may not match single-building values. The four Tenderloin buildings, mostly small units, traded at about $200,000 per unit.
How is 2026 shaping up compared with 2025?
Through September, 187 buildings sold for about $848 million in 2026, compared with 143 buildings and $642 million in the same months of 2025. The citywide average price per unit so far in 2026 is about $392,000.
How much have San Francisco rents risen in 2026?
The citywide average rent reached about $3,964 a month at the end of August 2026, up nearly 13% from $3,518 a year earlier. Many neighborhoods are running well above that average and increase percentage. Rising rents are the main reason values are climbing, and some buildings are back close to their 2021 values.
How are interest rates affecting San Francisco Apartment sales?
Borrowing got more expensive in September. The Federal Reserve raised the federal funds rate by a quarter point to 3.75%–4% on September 16, 2026 (Federal Reserve), and the 10-year Treasury, which apartment loans are priced off, topped 5% in mid-September for the first time since 2023. The 10-year averaged 4.76% in Q3 2026, up from 4.26% in Q3 2025. This is causing some buyers to hit brakes and reconsider pricing. If this rate sustains itself for over a month, we will see lower sales activity and pricing in Q1 2027.
Does pricing matter when selling a San Francisco Apartment building?
More than ever. In Q3 2026, 5–11 unit buildings that sold within 45 days got 102.0% of their asking price on average. Those that sat 100 days or more got 91.7%, and 37% of listed 5–11 unit buildings sat that long. With values up and financing costs rising, the right list price affects an owner's bottom line.
How are Caravelli Group's 2026 predictions tracking?
In our Mid-Year report we made three calls for the rest of 2026. At the end of Q3:
More than half of 12+ unit buildings sell off-market: on track, at 53% in Q3.
The citywide price per unit finishes the year above mid-year levels: on track, at about $395,000 in Q3.
District 9 outperforms: behind, with only six District 9 sales in Q3.
New call: 2026 will be the busiest year for San Francisco apartment sales since at least 2015, beating 2025's record of 244. Through September, 187 buildings have sold.
Q3 2026 numbers by building size and district
Smaller buildings drove the sales count and larger buildings drove the dollar volume.
By building size
Q3 2026 | 5–11 units | 12+ units | All |
Sales | 42 | 19 | 61 |
Volume | $115.5M | $156.5M | $271.9M |
Avg per unit | $415,884 | $350,189 | $395,422 |
Median per unit | $391,667 | $309,375 | $380,000 |
Avg per Sq Ft | $479 | $465 | $474 |
Avg Cap Rate | 5.48% | 5.29% | 5.43% |
Avg GRM | 11.98 | 11.79 | 11.93 |
Sale-to-list | 96.7% | 97.1% | 96.8% |
By district
District | Sales | Avg per unit | Cap rate |
1: Richmond, Jordan Park | 11 | $397,131 | 5.09% |
2: Sunset | 3 | $347,917 | 5.66% |
5: Eureka Valley, Noe Valley, Haight | 6 | $434,795 | 5.69% |
6: Hayes Valley, Alamo Square, NOPA | 7 | $420,468 | 5.57% |
7: Marina, Pacific Heights, Cow Hollow | 4 | $576,417 | 4.35% |
8 North: Nob Hill, Russian Hill, Telegraph Hill | 17 | $429,263 | 5.26% |
8 South: Tenderloin, Downtown | 7 | $272,917 | 5.99% |
9: SOMA, Inner Mission | 6 | $273,822 | 6.77% |
Volume, price per square foot and gross rent multiplier (GRM) by district, Q3 2026:
District | Volume | Per sq ft | GRM |
1 | $43.9M | $437 | 12.19 |
2 | $7.3M | $388 | 11.37 |
5 | $31.9M | $517 | 11.68 |
6 | $20.0M | $467 | 11.46 |
7 | $28.2M | $627 | 14.67 |
8 North | $61.3M | $529 | 12.34 |
8 South | $50.8M | $401 | 10.60 |
9 | $28.5M | $381 | 9.57 |
Districts 3, 4 and 10 had no sales in Q3 2026.
District prices, 2026 year to date
District 6 (Hayes Valley, Alamo Square, NOPA) gained the most, up 25% per unit from 2025. District 7 remains the most expensive at $523,486 per unit.
District | 2026 sales | Avg per Unit | vs. 2025 |
1 | 24 | $390,028 | +14% |
2* | 11 | $293,822 | −16% |
5 | 24 | $407,116 | +5% |
6 | 29 | $420,954 | +25% |
7 | 24 | $523,486 | +4% |
8 NoC | 42 | $430,801 | +11% |
8 SoC* | 19 | $214,602 | −4% |
9* | 14 | $291,472 | 0% |
District | 2026 per sq ft | 2026 GRM | 2025 per unit |
1 | $438 | 12.6 | $343,108 |
2* | $397 | 12.4 | $349,528 |
5 | $521 | 11.8 | $387,228 |
6 | $506 | 11.6 | $336,342 |
7 | $579 | 13.6 | $501,430 |
8 NoC | $531 | 12.1 | $387,413 |
8 SoC* | $345 | 9.1 | $224,187 |
9* | $401 | 9.1 | $292,464 |
District 2's lower average mostly reflects more Parkside and Outer Sunset sales this year. 2026 covers sales through September; 2025 covers the full year. *Fewer than 20 sales in 2026. Districts 3, 4 and 10 had no qualifying 2026 sales.
2026 vs. 2025 by building size, January through September
Both small and large buildings are worth more than a year ago by every measure.
Jan–Sep | 5–11 units | 12+ units |
Sales 2026 | 120 | 67 |
Sales 2025 | 90 | 53 |
Per sq Ft. 2026 | $499 (+26%) | $457 (+14%) |
Per sq Ft. 2025 | $398 | $400 |
GRM 2026 | 11.9 | 11.5 |
GRM 2025 | 11.3 | 10.5 |
Sale-to-list 2026 | 97.7% | 99.0% |
Sale-to-list 2025 | 94.4% | 97.3% |
Largest sales of Q3 2026
Address | Units | Sale price | Per unit |
973 Market St, SOMA (Jul) | 69 | $19,000,000 | $275,362 |
520 Geary St, Tenderloin (Jul)* | 88 | $18,475,000 | $209,943 |
2775 Market St, Eureka Valley (Jul)* | 32 | $15,750,000 | $492,188 |
2401 Chestnut St, Marina (Sep) | 27 | $11,550,000 | $427,778 |
101 Point Lobos Ave, Outer Richmond (Sep) | 32 | $9,900,000 | $309,375 |
1440 Union St, Russian Hill (Sep) | 21 | $9,025,000 | $429,762 |
395 Euclid Ave, Jordan Park (Jul) | 18 | $8,600,000 | $477,778 |
755 Bush St, Downtown (Aug)* | 28 | $7,600,000 | $271,429 |
*Sold as part of a portfolio; the price shown is that building's share.
Highest prices per unit in Q3 2026
Address | Units | Sale price | Per unit |
2901 Buchanan St, Cow Hollow | 9 | $6,626,000 | $736,222 |
733 Waller St, Hayes Valley | 6 | $4,078,000 | $679,667 |
1874 Vallejo St, Pacific Heights | 6 | $3,700,000 | $616,667 |
78 Parker Ave, Jordan Park | 7 | $4,170,000 | $595,714 |
674 Haight St, Haight-Ashbury | 5 | $2,899,000 | $579,800 |
How this data was compiled
This report covers closed sales of San Francisco apartment and mixed-use buildings with 5 or more units from July 1 to September 30, 2026. Data comes from MLS sale records, public records and Caravelli Group's database of San Francisco multifamily sales, which goes back to 2015.
Averages are simple averages across the sales in each group.
Cap Tates and Gross Rent Multipliers (GRM) are reported only where income data was available (48 of 61 sales in Q3 2026).
Earlier quarters include sales reported after our Q1 and Mid-Year reports were published, so some figures are slightly higher than in those reports.
This report is for information only and is not a forecast or an appraisal.
About the authors
Kevin Caravelli is a partner at Caravelli Group and an investment sales agent in the San Francisco office of Coldwell Banker Commercial Realty, specializing in multifamily and mixed-use buildings. DRE #01988049 · 415.271.8517
Steve Caravelli founded Caravelli Group and has nearly four decades of experience and more than $1.7 billion in closed transactions. DRE #00879834 · 415.706.0008
Caravelli Group advises owners and investors on the sale of San Francisco apartment buildings, focusing on the 5-to-75 unit Middle Market.
FAQ
Is the San Francisco apartment market still strong in late 2026? Yes. 187 buildings sold in the first nine months of 2026, compared with 143 a year earlier, and the average price per unit rose 7.4% year over year in Q3. Sales slowed from Q2 to Q3, as they did in 2025.
What is the average Price per Unit for a San Francisco apartment building? $395,422 in Q3 2026, with a median of $380,000. Buildings of 5–11 units averaged $415,884 per unit, and buildings of 12+ units averaged $350,189.
Which San Francisco district has the most expensive apartment buildings? District 7 (Marina, Pacific Heights, Cow Hollow), at an average of $576,417 per unit and $627 per square foot in Q3 2026.
Are San Francisco Cap Rates going down? Yes. The average cap rate fell from 6.01% in Q3 2025 to 5.43% in Q3 2026, the lowest quarterly average since Q2 2023.
What is my San Francisco apartment building worth? Caravelli Group provides confidential opinions of value based on current sales in your district. Contact Kevin Caravelli at 415.271.8517 or Steve Caravelli at 415.706.0008.
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