- Multifamily remains steady. Vacancy improved to 5.2%, down from last quarter, while rents increased approximately 1.3% year-over-year.
- Apartment values are holding. North Bay multifamily pricing averaged about $308,726/unit, only slightly below last year.
- Sales volume slowed sharply. Multifamily sales volume fell to roughly $37.9M for the quarter, well below the 10-year average.
- Buyers are active, but cautious. Recent trades averaged approximately $278,000/unit, $292/SF, 11.70 GRM, and a 6.2% cap rate over the last six months.
- CRE is selective. Broader North Bay CRE pricing averaged about $278/SF, while quarterly sales volume dropped to approximately $53.6M.
Multifamily Market — 5+ Units
What moved in Q2
- Inventory: Approximately 2,788 buildings / 101,932 units
- Vacancy: 5.2%, down 0.4% from last quarter
- Rents: Up approximately 1.3% year-over-year
- Pricing: Approximately $308,726/unit
- Recent sales: Average of approximately $278,000/unit, $292/SF, 11.70 GRM, and 6.2% cap rate
- Listings: Approximately 90 multifamily properties currently on the market
- New supply: Approximately 1,528 units under construction, with 1,102 units delivered over the trailing 12 months
What it means
The North Bay multifamily market is not booming, but it is holding up well. Vacancy has improved, rents remain positive, and pricing has not materially reset despite higher interest rates.
The bigger change is transaction volume. Buyers are still looking, but they are underwriting much more carefully. Insurance, repairs, capital improvements, tenant quality, and realistic rent growth are all getting more attention.
For owners, this is a good time to review whether the property still fits your goals. A well-run apartment building with stable income may still be a strong long-term hold. But if the building has become management-intensive, has deferred maintenance, or no longer fits your family or estate plan, the market still offers options.
Commercial Real Estate Context
What moved in Q2
- Vacancy: 8.6% overall
- Pricing: Approximately $278/SF, up modestly from last year
- Sales volume: Approximately $53.6M, down significantly from last quarter
- Industrial rents: Up approximately 6.88% year-over-year
- Office vacancy: Approximately 12.2%, still the most challenged sector
- Retail vacancy: Approximately 6.2%, showing relative stability
What it means
The broader CRE market remains selective. Industrial is still the strongest long-term property type, retail is holding up better than many expected, and office continues to sort itself out.
Buyers are not gone. They are simply more disciplined. Properties with clean financials, strong locations, realistic pricing, and a clear income story are still getting attention.
For Multifamily Owners
- Tighten up your rent roll, leases, expenses, and capital improvement records
- Know your true NOI before making a decision
- Be realistic about insurance, repairs, and buyer financing
- Show rent upside only when it is credible
- Consider whether your property still fits your long-term income, family, and lifestyle goals
How I Can Help
- Valuation & strategy: hold, refinance, improve, exchange, or sell
- Multifamily review: rent roll, expenses, upside, and likely buyer pool
- Go-to-market prep: pricing, positioning, buyer outreach, and reduced transaction friction
- Owner guidance: helping long-term owners simplify their portfolio while maintaining income
Curious how these shifts affect your apartment building or investment property? Email or call me — I’m happy to run the numbers with you.