The East Bay apartment market continues to show strong momentum as rental demand strengthens, mortgage rates remain below 6%, and buyers become increasingly active. This July update includes recent rental activity, current market conditions, investment opportunities, and an outlook for apartment owners and investors.
Rental Market Update
We had a vacancy (2 bdrm) in Adams Point, Oakland. The previous tenant was paying $2850. We remodeled the kitchen and bathroom.
The first day of open house, I got it rented at $3200. 4–5 couples wanted to move forward that morning. The Oakland/Berkeley area is so in demand right now.
The Bay Area continues to recover to pre-COVID levels.
BART numbers are up, as all new jobs are either hybrid or full time in the office.
The Artificial Intelligence (AI) companies are hiring in big numbers and that makes demand for apartments in the City, which also increases demand for good locations in the East Bay.
More companies are having employees come back to the offices. With the AI companies leasing thousands of square feet, and full-time employees returning to the office, apartments are in high demand for renters.
We have been here before. When the economy of the Bay Area gets stronger, it affects rental values in a positive way.
Renters will continue looking in the East Bay for nice units with lower rents.
Our most recent vacancies have had a lot of interest and have rented the first day after the open house.
For sellers, there are higher offers from buyers as monthly mortgage payments become lower.
Buyers can move forward because mortgage rates are lower, reducing their costs and making them more aggressive.
Featured Investment Opportunities
12-Unit Apartment Building in Temescal (Off Market)
A 12-unit property in Temescal is currently available off market.
To see the income and expenses for the 12-unit in Temescal, click here:
12 Unit in Temescal Income/Expenses
Upcoming Five-Unit Property Near Grand Avenue
A five-unit building located two blocks from Grand Ave. (walking distance to shopping and restaurants) will be on the market soon.
The owners are completing updates including:
- New windows
- New balcony and decks
- New paint
It will be priced at approximately a 5.7 CAP rate.
If you have any interest or questions, please reach out.
The buyer’s market is pretty strong and I’ve met a lot of buyers who are still looking to purchase multi-unit buildings.
To see information on my recent listings, sales, and previous newsletters, please click East Bay Apartment Advisors.
East Bay Apartment Market Valuations
Update: Mortgage rates have dropped to under 6%.
This will get buyers more interested in purchasing investment properties.
As we have been in a higher interest rate environment for years, buyers are motivated and ready to invest in investment properties.
When the Fed announces the timing for additional interest rate drops, we should see even more activity. The lower the mortgage interest rate, the more buyers are willing to pay.
Sellers are still getting strong offers for properties that are in good locations, have stable rents, and have no deferred maintenance issues.
Outlook for East Bay Rents
If you are having trouble getting a vacancy filled or have questions, please reach out.
Remember that it is better to do a “temporary rent reduction” rather than permanently lowering the rent. This is true for both existing tenants and new tenants.
East Bay Apartment Market Trends
If you are thinking about selling within the next 6–12 months, starting the process now would be a good idea.
The market remains strong, as buyers are still paying prices based on income levels similar to pre-COVID.
Capital Gains Tax Deferral Options
One of the most common questions that comes up is:
How do I defer capital gains taxes?
Two options include:
- Delaware Statutory Trust (DST Tax Deferral)
- 1031 Tax Deferred Exchange
I also gave a presentation on increasing rental revenue at the East Bay Rental Housing Association in January 2025.
Maximizing the Return on your Investment
Please reach out if you are interested in learning more about the DST option or a 1031 Exchange.
Recent Transaction
My late Fall ’25 transaction, a Fourplex in Oakland, went into contract at the list price with a very short closing and no issues.
If priced correctly and marketed fully, sellers are getting very strong offers.
Current Market for Building Sales
If you are thinking about selling your apartment building, I can help you with an evaluation and guidance.
I have spoken with two of the top lenders for East Bay multi-unit properties, and they are actively working on and closing transactions. I can forward their contact information if you would like to speak with them.
Right now, buyers with a good down payment can obtain financing, and I can help navigate the process.
It is always important to get guidance from experienced multi-unit brokers who will market your property extensively to all potential buyers and brokers.
Posting a building on all major websites and sending email blasts gives the property visibility to literally tens of thousands of qualified buyers.
Looking Ahead
The East Bay apartment market is well positioned for a strong Spring/Summer 2026.
If you are interested in buying, selling, or discussing the East Bay apartment market, please reach out.