Bay Area fundamentals stayed solid, with the AI/ML sector continuing to hire and lease large blocks of space despite regional tech layoffs.
Job growth is expected to keep rising over the next 12 mo, giving multifamily demand added support as the Bay Area economy keeps moving forward.
Development remains constrained by steep construction costs, even with improved market conditions, so the region still needs more apartment supply to meet demand.
State housing mandates and less onerous regulations may help more Bay Area deals pencil out, creating a clearer path for future multifamily construction.
Expectations also point to second-half IPOs from two leading AI/ML firms, a potential tailwind for hiring, leasing activity, and broader apartment demand.