Beacon said the San Francisco area rental market “appears to be approaching the end of frenzied growth.” The firm expects multifamily permitting activity will fall by 18 to 24 percent in 2017, as compared to 2016, as “demand for apartments in the region’s pricier submarkets continues to cool.”
Beacon anticipates rising mortgage rates will keep San Francisco area single-family home price appreciation on track for more modest gains of 3 percent to 4.5 percent over the next year.
But in the East Bay, Beacon expects median single-family home prices will gain steam, with appreciation over the next year coming in at 5.6 percent to 6.2 percent.