Summer 2025 Rental Market Update
This summer brought an extraordinary shift in San Francisco’s rental market. At WM Properties, we experienced turnover across multiple apartments in both Nob Hill and the Mission/Dolores neighborhoods—offering us a rare, real-time view into the rental landscape.
What We’ve Seen
In recent months, we achieved rent increases ranging from 20% to 40%, with several units turning over and attracting multiple bids above asking price. Reviewing listings on Zillow and Realtor.com, however, revealed no clear signal of this surge. The data simply didn’t reflect the intense demand we encountered—evidence that the Bay Area is once again operating firmly as a landlord's rental market.
This disconnect serves as a reminder: without insider insight, listing data alone can fail to capture the true state of play. If our team isn’t the only one seeing these dynamics, actual rents citywide are likely well above published indicators.
What the Numbers Show
Let’s look at relevant rental metrics in the neighborhoods in which we operate based on local and national data sources:
Mission/Dolores: As of August 2025, the median rent across all unit types is about $3,972/month, reflecting a 14% annual increase.
Nob Hill: Studios average around $3,223/month, while one-bedrooms reach $4,800/month.
By comparison, the citywide average rent (across all apartment types) is about $3,522/month, with Nob Hill and Mission/Dolores ranking well above that benchmark.
Market Momentum & Driving Forces
Citywide, rental prices are climbing—San Francisco rents rose by 13% year-over-year for one-bedroom units, nearly reaching pre-pandemic highs. Meanwhile, Studio vacancy rates are projected to fall sharply by Fall, signaling continued upward pressure on pricing.
These trends are fueled by economic tailwinds: local offices are filling up again, retail is reopening, and the AI boom is drawing more talent—and renters—back to the city.
What This Means for Listings
Our experience underscores an important lesson for both landlords and asset managers: achieved market rents can outperform published data, especially during surges in demand. With rents rising as much as 40% in our own portfolio, there may be untapped upside in many properties that listing databases still under-report.
At WM Properties, we aim to bring these nuanced insights to our clients. As we look toward the next few months, we’ll continue watching the market closely—tracking lease negotiations, rent surges, and bid patterns to stay ahead of the curve.