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Bay Area market rental trends report

Relocity November 01, 2025

Rental Trends

3:22

Over the past 3–6 months, San Francisco's rental market has experienced a significant surge, with median rents increasing by approximately 12% year-over-year as of September 2025. This rapid escalation is primarily driven by a robust influx of AI industry professionals, particularly from companies like OpenAI and Anthropic, whose high-paying roles have intensified demand for housing in the city. Additionally, a longstanding housing shortage, exacerbated by minimal new construction and stringent zoning regulations, has further strained supply. Currently, the median rent for all unit types in San Francisco stands at approximately $3,650 per month, reflecting the city's position as one of the most expensive rental markets in the nation.

Cupertino

Over the past 3–6 months, Cupertino’s rental market has shown modest fluctuations, with overall average rents rising approximately 4% year-over-year as of October 2025. While one- and three-bedroom units have seen moderate increases, studio and two-bedroom prices have remained relatively stable. This trend reflects continued demand from tech professionals employed in nearby Silicon Valley companies, alongside limited new housing developments that have kept vacancy rates low. The current median rent across all unit types is approximately $3,995 per month, underscoring Cupertino’s position among the nation’s more expensive rental markets.

Sunnyvale

Over the past 3–6 months, Sunnyvale’s rental market has experienced steady growth, with rents increasing across all unit types. This upward trend reflects strong demand and heightened competition in the local housing market. This growth is primarily driven by sustained demand from tech industry professionals in Silicon Valley and a limited supply of available rental units, which has kept competition high. Currently, the median rent across all unit types in Sunnyvale is approximately $3,760 per month, reflecting the city’s continued position as a high-demand rental market in the Bay Area.