San Francisco Housing Market 2019

What You Need To Know About San Francisco Housing Market in 2019

San Francisco has a very fascinating housing market. They just surpassed New York with the highest cost for housing in the United States.  According to noradarealestate.com San Francisco 2019, the housing market will be a pretty good investing opportunity. If you are potentially considering buying a house in San Francisco real estate market as a potential investment opportunity, you should consider a lot of these different variables. San Francisco, California now competes with New York with rental rates and the total cost of real estate.


San Francisco is struggling with a homeless problem which has led to a public hygiene problem. It’s so bad the city created an app for reporting public defecation. San Francisco homeless issue has created an investment opportunity for people who are willing to take the chance. If their market will take off it could mean a great return on investment for those who do it right.

San Francisco’s population is close to nine hundred thousand people. It’s considered the main hub of the San Jose-San Francisco-Oakland area. The larger metro area has a population of almost nine million people. It always ranks as one of the most expensive real estate markets in the United States.

San Francisco Real Estate Market Forecasts 

According to Zillow, the average home value is almost 1,500,000. Most of San Francisco’s house values have gone up a half of a percent the past year.  Zillow predicts that San Francisco real estate market will continue to increase at that rate of the next year. The average house list price per square foot in San Francisco is just over a thousand dollars. The going average price of homes actively being listed in San Francisco is one million three hundred thousand. To rent a decent house in San Francisco is will cost a person over four thousand. Home values are expected to increase in value going through 2021. Predicting out much further than that can lead to inaccurate estimated based on how the overall housing markets trend.

San Francisco Housing Market Trends

San Francisco real estate markets are predicted to increase by four percent for the average home sale price. The average price per square foot is expected to jump up by approximately ten dollars per square foot. The average listing price for homes in San Francisco is going to be around one million four hundred thousand. While Average price per square foot in San Francisco increased at on percent compared to the same time frame last year. The average rent a month for apartments in San Francisco was four thousand two hundred dollars. Data provided by Redfin.com showed that the San Francisco housing market is one of the most competitive real estate markets in the United States.

Most homes listed in San Francisco will receive two or more offers and sell about one month after being listed on the market. The average purchase price for a home in San Francisco was one million four hundred and forty thousand. That is three percent growth from the year before. The sale price per square foot in San Francisco is one thousand eight dollars. This is about a two percent increase from last year. Hot housing neighbors can sell within two weeks with an approximately sixteen percent increase in the asking price for the home. There are thirteen hundred homes for sale in San Francisco with the prices ranging anywhere from ninety-five thousand dollars to over forty million dollars. Several hundred homes are listed every week. Additionally, San Francisco has over six hundred rental properties with the cost of rent being anywhere from eight hundred to over two hundred thousand a month. 

Early in 2019 the housing market in San Francisco balanced meaning there was approximately the same amount of buyers and sellers in the market at the same time. This year the average listing price for homes in San Francisco is around one and a half million.  Roughly a five percent increase in growth from last year. In general, the housing market in San Francisco is experiencing growth in all areas ranging from the price at which homes are sold to the cost of rent increasing as well. This is good for the people who are selling properties or are renting properties out to families or individuals. The amount of days that hoses stay on the market has remained pretty much the same.

San Francisco Single Family and Multi-Family Homes

After the housing market crash in 2007, renting properties became the more favorable option for investors.  The quick turnaround for an owner to rent out their property means an almost immediate return. Rental homes have increased close to thirty percent over the past three years. The majority of the housing demand in the US recently has been single-family rental units. The reason rental properties have become so popular is that the house prices in San Francisco are some of the most expensive in the United States. Large apartment complexes are the most common type of housing in San Francisco. This accounts for almost fifty percent of the city’s rental housing. Duplexes are another very common type of housing in San Francisco. Duplexes are homes that were converted into small apartments. People in San Francisco typically live in one or two-bedroom apartment units. San Francisco has a large diverse mixture of the owner and renter-occupied housing. Currently, there are over two hundred single-family homes for sale in San Francisco at the moment listed on Zillow and over two hundred and fifty single-family homes for rent. There is always a continual demand for housing based on the population of San Francisco and the surrounding areas.  

San Francisco Home/Property Appreciation 

San Francisco’s real estate has appreciated over ninety percent in the past ten years. This means the average annual home appreciation rate is close to seven percent. This ranks San Francisco in the top ten percent in the nation for real estate appreciation. San Francisco’s real estate appreciation rates are extremely good. Even if the market slowed down across the nation San Francisco real estate has continued to appreciate. This is crazy considering how the housing market normally reacts to market change. Even within the last year, San Francisco appreciation rates continue to be some of the best in the United States. San Francisco’s latest annual real estate appreciation rate is higher than ninety percent of the other cities and towns in all of California. These appreciation rates are a really good sign for potential or new investors. While the entry-level prices for acquiring properties are significantly higher in San Francisco compared to other markets around the United States the appreciation value really helps the investor purchase property at a slightly higher cost knowing the appreciation will add a lot more value in the term. 

Best Location for Real Estate in San Francisco

If you are considering buying real estate in San Francisco make sure you should know the best places to invest in. There are three very important factors when looking to purchase real estate anywhere. They are location, location, and location. Location is what creates desirability for a place to live or build. Desirability is what drives demand. Demand is what raises the price of housing in San Francisco. Knowing where to buy and for how much will determine how much profit you’ll make flipping a house for a lump sum. If you’re looking to invest in San Francisco real estate market you need to be able to find places where the expected property appreciation forecast is positive or a place that will be considered an up and coming neighborhood. The regular costs for owning and or managing a San Francisco investment property should be relatively low. You’ll want a neighborhood in San Francisco that is safe to live in with a low crime rate. The neighborhoods should be somewhat close to things such as public services, grocery stores, shopping malls, and anything else needed for daily living. You want the area to have a natural upcoming demand for rental properties while having a low supply of income properties. This will create the demand you need. Some of the best neighborhoods to live in around San Francisco to invest in are South Beach, Pacific Heights and Outer Sunset. These areas have the most potential for investments currently. If you’re looking to purchase or sell in those areas consider checking out fasthomesales.com for a quick turnaround. 

Should You Invest in Real Estate

Have you considered is it worth buying a house in San Francisco? Investing in real estate is one of the best ways to become wealthy or lose all your money if you’re not careful. Good decision making and excellent data are vital to a real estate investor’s success. Many real estate investors have looked into purchasing property in San Francisco. Is this a good investment?  You’ll have to take a closer look at the local market trends to decide if it is a good idea for you to invest in San Francisco real estate market or not. Knowing market trends can give you a big advantage over others as to whether to invest in certain areas or not. While we have already talked a lot about the San Francisco housing market going into 2020 one can never know for certain what the housing market will be for sure.  I would not consider this article enough to make a comprehensive final decision on investing in the San Francisco housing market. There are some other variables to consider when looking into potentially investing in a certain geographical market. Investing in San Francisco real estate has the potential to net you some large returns in the long term as the home prices continue to increase.  

The job market plays a big role in the overall decision on whether or not to invest in a particular region. Is this an area that will have a good long term job market? This impacts people’s decisions on whether or not to move to a new area. The local economy has a tremendous impact on the long term profitability of an investment. While San Francisco has a pretty good job market people do have to consider things such as their commute to work.  Can I afford to live here based on my monthly income? The predicted 2020 job market slowdown could potentially have an interesting effect on the local housing market trends in San Francisco. This shouldn’t be an issue in San Francisco because they have such a low unemployment rate. San Francisco is also in a great geographical area. The city sits on a peninsula which means it’s surrounded by water on three sides. This means they cannot build out more to meet housing demand; this increases the value of any house in San Francisco. This helps keep the property in high demand in San Francisco.  

Commercial Properties Are Trending

Another area that investors have been targeting is warehouses and factories. The old warehouses and factories can be converted into an apartment and lofts. These types of developments could produce large amounts of revenue and potentially help with the housing shortage in the city. This is a great investment to make because San Francisco has environmental groups that keep investors from turning large estates into huge development projects. This is a popular trend in large established cities around the world. Old warehouses offer open spaces, high ceilings, and proximity to public transit and downtown attractions. San Francisco is not parceled to this trend. The best opportunities in San Francisco though for real estate investments are buying up single-family homes. The high cost of living for families has forced a lot of families to leave San Francisco but it has opened the door to invest in single-family homes. There is a lot of growth in this area due to the number of single people and couples moving into San Francisco. Purchasing a three or four-bedroom home and converting it into three or four efficiency apartments can give you a great return on the price of real estate. High-efficiency apartments have become a go-to for current investors in the bay area. 

Quite a few new units are being built in San Francisco. Most of them are luxury homes or mega-mansions build for all the wealthy tech people who live in San Francisco. San Francisco incentivizes high-end construction.  This provides another option for investors to look into. While building permits can be a hassle to get there is a gold mine when it comes to purchasing them. Even old frames of a building that already have demolition can sell for a lot more just because it so hard to acquire the demolition permits from the city. If you have a connection with someone in the permit department it would give that particular investor a huge advantage.  An investor could have their niche just purchasing properties without a demolition permit, and then get the demolition permit and resell the property for a lot more without having to do any repairs on the building structure A better the cash flow on a property the more profitable the investment can be. This is why it’s so important to find good real estate properties to invest in. Investing in the right properties in San Francisco could make it possible to retire early.  Most experts recommend starting with a one to two hundred thousand dollar property in San Francisco first. This will help keep expenses down. It is difficult to find properties at that price in San Francisco. The majority of investors in San Francisco only invest in residential properties. A great idea if you’ve never invested in san Francisco it would be wise to connect with some real estate investors in San Francisco who have retired already do to their wise investments. These types of mentors can provide invaluable information and guild you in making the best potential real estate investment. San Francisco real estate market is very expensive, but that doesn’t mean it’s all overpriced. There are always more opportunities, it just a matter of finding them. If San Francisco had better leadership and eased up on their permit restrictions to allow more redevelopment the city could take off.

In Conclusion

In general, investing in real estate in San Francisco could have huge potential in your return on investment. Some other good neighborhoods to consider investing in include the Marina district, Parkside, Pacific Heights, Cow Hollow, Hayes Valley, Cole Valley, Presidio Heights, Lower Haight, and Noe Valley. All of these neighborhoods have really good potential for real estate investors. A lot of these homes can be redeveloped and turned into two or three single bedroom apartment studios. Another good place to find good real estate investments are quite unknown up and coming areas.  This style gives the can provide a good return on investment. If you are trying to sell your house or know people who are trying to sell their house to move out of San Francisco consider contacting the people at Fasthomesales.com. They do a remarkable job of acquiring your house and making the process super easy for the seller. 


Wesley Schebs

Wesley Shebs is a full time Real Estate investor with Fast Home Sales. He specializes in property marketing and acquisitions, along with some project management. When Wesley is not chasing down his next property you can find him throwing head kicks at his MMA gym Upstate Karate in Simpsonville, South Carolina. Follow him on Instagram @shebs100.

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