Generating social networks is essential for many applications, such as epidemic modeling and social simulations. Prior approaches either involve deep learning models, which require many observed networks for training, or stylized models, which are limited in their realism and flexibility. In contrast, LLMs offer the potential for zero-shot and flexible network generation. However, two key questions are: (1) are LLM's generated networks realistic, and (2) what are risks of bias, given the importance of demographics in forming social ties? To answer these questions, we develop three prompting methods for network generation and compare the generated networks to real social networks. We find that more realistic networks are generated with "local" methods, where the LLM constructs relations for one persona at a time, compared to "global" methods that construct the entire network at once. We also find that the generated networks match real networks on many characteristics, including density, clustering, community structure, and degree. However, we find that LLMs emphasize political homophily over all other types of homophily and overestimate political homophily relative to real-world measures.