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Despite its high prices, San Francisco continues to be a solid real estate investment in 2025.
Read this article to uncover why this iconic city remains a great choice. If you’re thinking of investing, use our San Francisco real estate profitability spreadsheet to make data-driven decisions.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) San Francisco's median home prices rose by 7% in 2024
In 2024, San Francisco's median home prices rose by 7%, indicating strong demand and a thriving real estate market.
This growth makes the city attractive to investors, driven by its cultural attractions, tech industry, and scenic beauty.
The ongoing demand suggests continued property value increases, promising good returns for investors.
San Francisco remains a solid choice for real estate investment in 2025, offering a stable and lucrative market.
Source: Redfin
- No, housing prices won't drop in San Francisco in 2025 (12 stats)
We created this infographic to show how property prices in San Francisco compare to other big cities in California. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
2) San Francisco's $41.4 billion capital plan should boost livability and real estate demand
San Francisco plans $41.4 billion in capital improvements over the next decade, with $24.8 billion from city investments and $16.7 billion from external agencies, as detailed in the 10-Year Capital Plan.
For fiscal years 2024-25 and 2025-26, significant funds are allocated to infrastructure projects in health, housing, and transportation.
These investments aim to boost livability and economic activity, attracting residents and businesses, increasing real estate demand, and raising property values.
San Francisco is positioning itself as a prime real estate investment location in 2025, offering potential returns and enhanced quality of life.
Sources: One SF Building Our Future, City & County of San Francisco
3) San Francisco homes sell in just 19 days
As of October 2024, San Francisco homes sold in an average of 19 days, highlighting a competitive real estate market driven by strong buyer demand.
Factors like the city's tech industry and cultural appeal attract diverse buyers, maintaining market dynamism.
Rapid sales often lead to property value appreciation, making San Francisco a promising real estate investment for 2025, with potential for solid returns through rental income and property value growth.
Source: Redfin
4) San Francisco's homeownership rate is quite low (38.6%), so a lot of people will want to rent your place
San Francisco's homeownership rate is about 38.6%, with 61.4% of households renting, indicating a strong rental market.
This is attractive for real estate investors seeking steady rental income.
The city's vibrant economy, tech industry, and cultural appeal draw a diverse population, many of whom prefer renting for its flexibility, ensuring consistent demand for rental properties.
These factors make San Francisco a compelling real estate investment opportunity in 2025, with promising market conditions for generating rental income.
Source: Data USA
- Yes, it's actually a better idea to rent your place in San Francisco
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5) San Francisco-Oakland's low 6.4% rental vacancy rate signals nothing but a hot market
As of Q2 2024, the San Francisco-Oakland area had a rental vacancy rate of 6.4%, indicating healthy demand and a competitive market.
This low rate suggests properties rent quickly, allowing landlords to maintain or increase prices.
Despite recent urban challenges, San Francisco remains attractive due to its strong job market, cultural attractions, and educational institutions, ensuring steady rental income and potential property value appreciation.
Investing in San Francisco real estate in 2025 is promising, offering stability and growth potential.
Sources: iProperty Management, United States Census Bureau
6) San Francisco's "30 x 30" plan aims to attract 30,000 new residents by 2030
San Francisco's "30 x 30" plan aims to bring 30,000 new residents and students to downtown by 2030, revitalizing the area and boosting property values.
This initiative seeks to create a vibrant urban environment that supports local businesses and cultural activities, increasing demand for housing and services.
As a result, San Francisco is becoming a prime location for real estate investment, offering opportunities for investors due to its proactive urban development and growth commitment.
Source: San Francisco Planning
7) San Francisco's $3.4 billion Caltrain extension in 2025 will boost connectivity,
San Francisco will receive a $3.4 billion investment from the Federal Transit Administration to extend the Caltrain rail line into downtown, starting in 2025.
This project will enhance city connectivity, making areas more attractive to residents and investors, boosting demand and property values.
The extension will improve commutes, reduce traffic, and connect neighborhoods and business districts, attracting homebuyers, renters, and businesses.
Consequently, overlooked areas may become real estate hotspots, increasing property values and rental yields.
San Francisco is positioning itself as a prime real estate investment location, with improved infrastructure promising strong returns.
Source: Smart Cities Dives
Our team designed this infographic to show how competitive the real estate market in San Francisco is vs. other major cities in California. It shows the percentage of sales above the list price, a key indicator of market competition.
8) The Powell Street Improvement Project will make SF more livable and desirable
San Francisco's real estate market is set to grow, driven by its focus on sustainability and safety.
The Powell Street Improvement Project exemplifies efforts to enhance pedestrian safety and urban aesthetics, improving quality of life and attracting residents and investors.
By prioritizing environmental and safety standards, San Francisco distinguishes itself as a forward-thinking city, appealing to investors seeking stable markets.
This focus ensures the city remains desirable, boosting real estate demand.
As infrastructure and livability improve, property values are expected to rise, making San Francisco a smart real estate investment in 2025.
Source: Union Square
9) San Francisco's thriving job market recently added 8,700 jobs
San Francisco's job market added 8,700 jobs from April to June, reflecting strong economic health.
The unemployment rate dropped to 3.6% in June, indicating a thriving job market.
This growth suggests San Francisco is expanding its economic base, with more people working and spending, which boosts the local economy and real estate demand.
These indicators make San Francisco a promising real estate investment opportunity in 2025, as a strong job market attracts professionals and families, driving up property values.
Sources: SF.gov, Employment Development Department State Of California
10) San Francisco's short-term rentals show a 57% occupancy rate, up 4%
As of June 2024, San Francisco's short-term rentals had a 57% occupancy rate, a 4% increase from the previous year, indicating growing demand.
The Average Daily Rate (ADR) rose 3% to $265.30, showing visitors' willingness to pay more.
Average annual revenue for rentals grew 3% to $21,400, highlighting profitability in the market.
These trends suggest San Francisco is a promising real estate investment opportunity for 2025, with rising demand and revenue potential.
Source: BnbCalc
- Why is 2025 an excellent time to buy property in San Francisco? Let's look at the data!
11) California's median home price is set to rise 6.8% in 2024
The California Association of Realtors forecasts a 6.8% rise in the state's median home price in 2024 and a 4.6% increase in 2025, indicating strong housing demand and a thriving market.
This growth suggests a stable and lucrative investment opportunity, particularly in San Francisco, where cultural appeal, economic opportunities, and limited housing supply drive even greater appreciation.
Investing in San Francisco real estate in 2025 aligns with these positive trends and offers a promising return on investment.
Source: California Association of Realtors
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So, is it a good time to invest in San Francisco real estate in 2025? Absolutely, it is!
San Francisco's real estate market is poised for growth in 2025, making it a smart investment choice.
With a 7% increase in median home prices in 2024, the city shows strong demand and a thriving market. The $41.4 billion capital plan and $3.4 billion Caltrain extension are set to boost livability and connectivity, further increasing property values.
Homes sell quickly, averaging 19 days on the market, and the low 6.4% rental vacancy rate indicates a hot market. The city's 38.6% homeownership rate suggests a strong rental market, offering steady income potential.