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Bay Area market rental trends report

Relocity Updated on January 27, 2026

Rental Trends

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Over the past 3-6 months, San Francisco’s rental prices have accelerated noticeably, reversing the relative stagnation seen earlier in 2024 and early 2025 with rents climbing year-over-year by high single to double-digit percentages in many segments. Rents across the city, especially in central neighborhoods, have risen month-to-month as vacancy rates tighten and demand returns. This increase is largely driven by resurgent demand from tech and AI sector employment, a renewed return-to-office trend boosting urban residency, and limited new multifamily supply, which together have kept vacancy rates near decade lows and intensified competition for available units. Currently, the median rent in San Francisco stands around $3,965 per month for all unit types, 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 seen modest overall rent increases, with average rents remaining relatively steady or edging slightly upward year-over-year as demand continues to outpace supply. According to recent market data, average rents in the city have shown small gains compared with the prior year’s figures, reflecting broader regional trends in the South Bay rental market. This change has been driven by continued strong employment in the tech sector and ongoing demand for housing in a limited supply environment, coupled with constrained new construction and zoning restrictions that restrict how much new rental stock comes online. The combination of high local incomes and intense competition for a relatively small number of available units has kept pressure on rents. Currently, the median rent in Cupertino is approximately $3,515 per month across all unit types, underscoring the city’s position as one of the more expensive rental markets in the Bay Area.

Sunnyvale

Over the past 3-6 months, rental prices in Sunnyvale have softened across all unit types after peaking earlier in the year, with studios, one-bedrooms, and two-bedrooms experiencing the most noticeable pullback from six-month averages. While rents remain elevated compared to longer-term levels, the most recent three-month averages indicate a clear downward adjustment from recent highs. This shift appears to be driven by seasonal demand cooling, increased availability of rental inventory, and a normalization of leasing activity following earlier tech-driven demand spikes. As competition among renters has eased and more units have come online, landlords have adjusted pricing to maintain occupancy. Currently, the median rent in Sunnyvale is approximately $3,255 per month, based on the most recent three-month averages across all unit types.