Bay Area market rental trends report

Over the past 3–6 months, San Francisco’s rental prices have continued to rise, though at a more moderate pace compared to the sharp increases seen earlier in 2025. Rents across the city have remained on an upward trajectory, particularly in central neighborhoods, as vacancy rates stay tight and demand remains strong. This sustained growth is driven by ongoing demand from the tech and AI sectors, continued return-to-office trends, and a constrained pipeline of new multifamily supply, all of which continue to limit availability and support higher pricing. As of Q1 2026, the median rent in San Francisco stands at approximately $4,050 per month for all unit types, reinforcing 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 remained relatively stable, with only modest increases across select unit types. While one- and two-bedroom units have experienced slight upward movement, overall rent growth has slowed compared to earlier periods, reflecting a more balanced market. This stability is driven by continued strong employment in the tech sector, steady demand for housing, and a gradual easing of pressure as some new inventory enters the market. However, limited supply and zoning constraints still restrict significant expansion, maintaining competition for available units. As of Q1 2026, the median rent in Cupertino is approximately $3,600 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 begun to stabilize following the softening seen in late 2025, with modest increases returning across most unit types. Studios, one-bedrooms, and two-bedrooms have shown slight upward movement from their recent lows, while three-bedroom units have remained relatively steady. Although rents are still below the peak levels seen earlier in the year, the most recent trends indicate a gradual recovery rather than continued decline. This shift is driven by steady demand from the local tech workforce, seasonal leasing activity picking back up, and limited new supply keeping overall inventory relatively tight. As competition among renters has modestly increased, pricing has adjusted upward to reflect improving market conditions. As of Q1 2026, the median rent in Sunnyvale is approximately $3,350 per month, based on the most recent averages across all unit types.

Apartment listings

Below are some recent listing examples.

Ventana Residences

• $2,681

• Studio/ 1 Bath

• 386 sq. ft 

L Seven

• $3,804
  
• 1 Bed/ 1 Bath
  
• 729 sq. ft

Windsor at Dogpatch

• $6,323
  

• 2 Bed/ 2 Bath
  

• 843 sq. ft
  
  

  

The Fillmore Center

• $5,957
  

• 3 Beds/ 2 Baths
  

• 1,141 sq. ft
  
  

  

(Data sourced from Apartments.com)