The San Francisco multifamily space remains one of the most sought after real estate investment markets in the country. With an unemployment rate below 4%, San Francisco is naturally supply constrained with high barriers to entry and enjoys one of the most robust employment markets in the country.

Case Study: Antifragile Multifamily

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Perhaps no other investment opportunity better personifies Nassim Nicholas Taleb's concept of antifragility than San Francisco multifamily properties.

Thanks to rent control, which not only creates barriers to entry that keep many investors out of the market, properties with tenants paying below market rents have significantly more upside than downside. Furthermore, units tend to turn over more often during a softening rental market, which means this kind of investment benefits from market weakness. In other words, while most real estate suffers during a downturn, this kind actually gets better.

Demand Drivers
- Entrepreneurial, start-up culture
- Young Silicon Valley workers choosing city life over suburbia
- Diversified economy generating high-income jobs
- Gateway to Asia
- Cuisine destination

Supply Constraints
- Natural barriers (ocean, bay, hills) 
- Environmental protection of remaining open space
- Complex, bureaucratic regulatory environment
- High construction costs