As we close out the year, there’s encouraging news across the Bay Area multifamily market. From interest rate movement to rental demand and buyer activity, several trends are aligning in favor of apartment owners, buyers, and sellers.
Interest Rates & Market Confidence
The Federal Reserve recently lowered interest rates again, and the impact is already being felt. Lower borrowing costs are improving buyer confidence and reducing monthly mortgage payments, which in turn is leading to more competitive offers.
The broader economy is responding positively as well. The Dow Jones Industrial Average is up nearly 14% this year, signaling renewed confidence across markets. After an extended period of higher interest rates, buyers and sellers are now aligned on current valuations. As the Fed provides more clarity on the timing of future rate reductions, we expect to see an uptick in transaction activity.
Increased Activity Across the Bay Area
We saw a noticeable increase in visitors over Thanksgiving week—levels not seen since before COVID. At the same time, more companies are continuing to bring employees back into the office, often on a hybrid basis. These trends are supporting both rental demand and long-term confidence in Bay Area real estate.
For sellers, this means stronger offers, particularly for well-located properties with stable rents and minimal deferred maintenance. For buyers, lower rates mean reduced costs and a greater willingness to move forward aggressively.
Upcoming Listing: Five-Unit Building Near Grand Avenue
A new five-unit apartment building will be coming to market in January, located just two blocks from Grand Avenue and within walking distance of shopping and restaurants.
The owners are completing several updates, including:
- New windows
- New balconies and decks
- Fresh exterior paint
The property is expected to be priced around a 5.7% cap rate. If you’re interested or have questions, feel free to reach out for early details.
This will be my third listing since May, and one thing remains consistent: when a property is priced correctly and located well, there is no shortage of qualified buyers.
Buyer Demand Remains Strong
The buyer’s market for multi-unit buildings remains active. I continue to meet buyers who are actively looking, particularly those with solid down payments and long-term investment strategies. Well-marketed properties are still receiving strong interest and clean offers.
Current Market Valuations
Sellers are continuing to achieve solid pricing, especially for properties in desirable neighborhoods with stable income. As interest rates come down, buyers are generally willing to pay slightly more, which supports current valuation levels.
If you’d like to see details on recent listings, sales, or previous market updates, visit East Bay Apartment Advisors for more information.
Outlook for East Bay Rents
Rental demand is strengthening. We recently filled two vacancies with increased rents and saw strong interest during the application process. Property management companies across the Bay Area are reporting similar trends.
New apartment construction has slowed significantly, which should continue to support low vacancy rates. As we move into better weather, demand is expected to remain strong.
If you’re having difficulty filling a vacancy or have questions about pricing strategy, feel free to reach out. In many cases, a temporary rent concession is a better option than permanently lowering rent—for both new and existing tenants.
Thinking About Selling in the Next 6–12 Months?
If you’re considering selling within the next year, starting the planning process now is a smart move. Buyers are still underwriting deals based on income levels similar to pre-COVID conditions, and well-positioned properties are selling efficiently.
One of the most common questions sellers ask is how to defer capital gains taxes. Two common strategies include:
- Delaware Statutory Trusts (DST)
- 1031 Tax-Deferred Exchanges
I’m happy to provide more information on either option.
Earlier this year, a fourplex in Oakland went into contract at list price with a short closing and no issues—proof that when properties are priced and marketed correctly, sellers can still achieve excellent outcomes.
Guidance Matters in Today’s Market
If you’re thinking about selling, I can help with valuation, strategy, and guidance throughout the process. I work closely with top East Bay lenders who are actively closing multi-unit transactions and can connect you directly if needed.
Experienced multifamily representation matters. Proper marketing—across listing platforms, broker networks, and targeted email campaigns—can expose your property to tens of thousands of qualified buyers.
Looking forward to a strong close to the year and a great Holiday Season 2025.
If you have questions, want an evaluation, or would like to discuss opportunities, don’t hesitate to reach out.