San Francisco’s rent-controlled housing market is facing increasing pressure as landlords seek to buy out tenants or pursue evictions under California’s Ellis Act amid rising demand fueled by the city’s booming tech industry. Long-term residents such as Bernard Dethiers, 74, who has lived in a North Beach rent-controlled apartment for more than four decades, are now confronting the prospect of losing affordable housing in a city where median rents have surged.

Dethiers pays roughly $1,100 monthly for his two-bedroom unit, far below August’s median asking rent of $4,395. When new owners acquired the building last year, they offered him $40,000 to vacate within three months. Dethiers countered with $600,000, calculating the figure based on future rent differentials over 20 years, but the owners rejected the offer. The landlords have since filed to evict Dethiers and five other tenants using the Ellis Act, which allows property owners to remove all rental units from the market to pursue owner occupancy. The tenants are now challenging the eviction in court.

The Ellis Act evictions occur alongside a rise in landlord-initiated buyout negotiations, where tenants are offered lump sums to voluntarily leave. Landlords must disclose their intent to negotiate to both tenants and the San Francisco Rent Board, where pre-buyout declarations increased by approximately 17 percent in the first half of 2026 compared to the same period the previous year. Ellis Act evictions and owner move-in notices accounted for about 10 percent of eviction filings during this period.

Legal advocates for tenants emphasize that relocation payments mandated by law often fail to cover the costs associated with moving in the city’s expensive housing market. Dethiers and his son, who are eligible for relocation assistance totaling around $29,000 owing to Mr. Dethiers’ age and tenancy duration, say the amount is insufficient to secure comparable housing locally.

Landlords cite various motivations for buyouts and evictions, including the desire to charge market rents, capitalize on property values, or live in the units themselves. Scott Freedman, a lawyer representing property owners, noted that demand remains high with limited supply due to recent technology-driven economic growth. This has sparked a renewed interest from former owners and their families seeking housing in San Francisco.

Instances such as those of Craig Lipton and John Alioto illustrate the complexity of the situation. Mr. Lipton, who owns a two-unit luxury building in Nob Hill, negotiated buyouts with tenants paying significantly below market rent to clear the way for a sale. After several rounds of offers, he settled on $100,000 to reacquire possession. He listed the building afterward for $7.25 million.

Conversely, John Alioto, a lifelong San Francisco resident and doorman, has repeatedly declined buyout offers ranging from $70,000 to $104,000 for his rent-controlled apartment in Nob Hill, which he shares with housemates. Alioto expressed deep concern over the possibility of eviction and losing the home that has anchored his life in the city. Tenants in similar situations worry about the scarcity of affordable housing and the emotional toll of displacement.

Tenant advocates stress that rent control provides some leverage by capping annual rent increases and giving tenants the option to refuse buyouts or cancel agreements within 45 days. Nonetheless, if negotiations fail, landlords may resort to evictions under the Ellis Act or no-fault evictions permitting owner or family occupancy after a mandatory three-year residency.

While some residents like Mike Dineen, who has lived near Nob Hill for nearly 30 years, find buyout offers inadequate and have opted not to engage, many remain uncertain about their housing futures amid a competitive rental market. For longstanding tenants priced out in the current environment, the risk of losing their homes underscores ongoing tensions between tenant protections and property owners’ interests in a rapidly evolving urban landscape.