SAN FRANCISCO REAL ESTATE: A COMPLETE GUIDE 

SAN FRANCISCO REAL ESTATE: A COMPLETE GUIDE 

 

Today we talk about real estate in San Francisco, and, above all, we analyze the current market trend.

 

Are you looking for information about a possible future purchase, but don't know where to start? We've put together this guide to provide you with the key information you need to know about the San Francisco real estate market.

 

This city has undergone significant changes in recent years; the neighborhoods are particularly diverse and require some analysis.

 

Where to invest? How is San Francisco's economy performing? What market type? We'll answer these questions to help you gain clarity.

 

real estate in San Francisco

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The San Francisco Neighborhood Guide

Full of trendy neighborhoods and older ones, San Francisco is a very diverse place with generally high prices. From colorful and historic Victorian homes to homes with perfect views of the famous Golden Gate Bridge, if you decide to buy real estate in San Francisco, you'll definitely need some help with neighborhoods.

 

Fisherman's Wharf

Located on the northern seafront, this area is a popular tourist attraction and is home to many hotels and charming little souvenir shops. It's a well-known area and is often crowded.

 

It's known for being the home of local sea lions, but also boasts a variety of restaurants and shops. It's an ideal neighborhood for families and young adults. Fisherman's Wharf is also popular for its low crime rate and endless activities. It's also one of the main stops for San Francisco's cable cars, making it the perfect "cliché" that comes to mind when you think of San Francisco.

 

Financial District

Often called "the Wall Street of the West Coast," San Francisco's Financial District is the city's business center and the location of towering skyscrapers and iconic landmarks.

 

Located downtown, this part of town is close to high-end restaurants and the vibrant nightlife that characterizes San Francisco. While this neighborhood is an ideal place to live for young professionals and entrepreneurs, the Financial District is also ideal for business travel.

 

Close to many businesses and start-ups, getting around by public transport is also very easy for residents.

 

Mission District

The traditional Latin Quarter, named after the iconic National Register-listed church (Mission Dolores), is the oldest surviving structure in San Francisco.

 

This neighborhood has seen constant evolution and massive growth over the years. More and more families and young professionals are moving to the area due to the tech industry. Surrounded by breathtaking murals and colorful streets, street art attracts tourists every year.

 

Finally, an important point for investors to know is that this area is often mentioned due to certain sometimes insecure situations.

 

North Beach

Often referred to as "Little Italy," the North Beach neighborhood is home to a large Italian-American population. Close to the Financial District and Chinatown, it's a great option for residents who work downtown. Authentic Italian pizzerias, trattorias, cafes, and ice cream parlors are found throughout the city. It's also known for its nightlife.

 

This charming neighborhood is prized for its local history and Italian heritage. As a result, it is now one of the city's many popular tourist destinations. Perfect for families, young couples, and retirees, it boasts numerous green spaces and open parks, as well as an abundance of entertainment.

 

Russian Hill

It is an upscale neighborhood nestled on one of San Francisco's 44 hills. It was originally named by settlers who discovered a Russian burial ground on top of the hill during the Gold Rush.

 

This neighborhood is rich in history. It is home to one of the city's most popular tourist attractions, Lombard Street, which is known as the "crookedest street in America." With numerous shops, restaurants, and bars, Russian Hill offers a perfect blend of both trendy and classic.

 

Haight-Ashbury

Part of the counterculture movement in San Francisco in the 1960s and 1970s, the Haight-Ashbury neighborhood remains a reminder of this revolutionary era. Today, it's a historic neighborhood with a hippie vibe.

 

Considered one of the safest neighborhoods in San Francisco, families and young professionals flock to this part of town for its lively and eccentric atmosphere. With many vibrant and colorful Victorian houses lining the streets, it's also beloved by many celebrities who own homes here (Jimi Hendrix, to name just one).

 

Pacific Heights

This is where you'll find the most beautiful panoramic view of the Golden Gate Bridge. Voted one of San Francisco's most prestigious and affluent neighborhoods, Pacific Heights features Victorian-style homes that attract many families to this residential community.

 

In fact, it's important to understand that this neighborhood is home to the largest and most expensive homes in the entire city and is home to most of the billionaires currently living in San Francisco. Not only are the homes incredible, but the crime rate is well below average, making it one of the most desirable places to live in San Francisco.

 

San Francisco Real Estate Market Trends

San Francisco is considered by many to be the cultural and industrial center of Northern California. The city is home to nearly 882,000 residents, making it the 16th largest metropolitan area in the United States.

 

However, in addition to the city's scenic location and unique culture, San Francisco County is also known for having one of the highest per capita incomes in the United States, making it a very lucrative area for investors.

 

Like most other major cities, San Francisco's real estate market has been heavily impacted by the coronavirus pandemic.

 

Here's a look at some of the top trends in San Francisco's real estate market:

 

Rental housing is on the rise: The percentage of vacant rental units in San Francisco currently stands at 8.5%. This is a 5.5% increase year over year. This is due to widespread teleworking, and therefore remote and sometimes even "very long distance" work.

It seems this will be a short-term problem as more and more companies require workers to return to the office. However, it seems that working from home is something many employees are now taking for granted. It's therefore not uncommon for renegotiations to be made in this direction...

 

For its part, the median rental price is also down 8.1% over one year.

Housing supply remains stable: San Francisco currently has only 2.1 months of housing supply, which is better than the rest of the country. Indeed, the United States is currently experiencing a widespread housing inventory deficit.

Economic and Social Analysis of San Francisco

Labor market

At the beginning of 2021, the unemployment rate in San Francisco was 6.7%, just above the national average of 6.3%. It's important to note that it's on a downward trend, peaking at 13.2% at the height of the pandemic. For investors, this also means that the rental vacancy issues they're facing are relatively short-term.

 

Generally, San Francisco's unemployment rate is lower than the national average, and while unemployment increased in 2020 due to the coronavirus pandemic, this statement remains true.

 

Although the region's tourism industry has been hit hard during the pandemic, its position as one of the country's leading tech hubs protects it more compared to other areas.

 

University environment

In total, the Bay Area is home to approximately twenty universities, meaning it offers a significant market when it comes to student housing.

 

We can cite three of the best schools in the region:

 

Stanford University: It is generally considered one of the best universities in the country. On par with other prestigious educational institutions like MIT and Yale University. Stanford is home to approximately 16,000 graduate and undergraduate students.

University of California, Berkeley: Commonly referred to as "UC Berkeley," this institution is one of the Bay Area's top-rated public universities. Located about 10 miles from San Francisco, UC Berkeley enrolls a total of approximately 44,000 students.

University of San Francisco: Nestled between the Golden Gate Bridge and Golden Gate Park, the Jesuit University of San Francisco is smaller than the other schools on this list. Its enrollment is approximately 11,000 students.

 

Should you invest in San Francisco?

The answer obviously can't be a simple yes or no. First, because it's a decision that requires careful consideration. Second, because the answer can only come from you and your goals. However, let us provide more information to help you through this process.

 

The first thing you need to understand is that San Francisco is already a mature market overall. The median price of a two-bedroom apartment is over $1 million. Several conclusions must be drawn from this; just as any mature market can offer you a very attractive asset, San Francisco can offer you a very attractive asset. As we have seen, the city's economy remains strong, with a technological fabric that protects employment in this area.

 

However, such prices should give you pause for thought. For example, for a first investment in the United States, do you want to go for such a budget?

 

The second element we haven't addressed (and not the least) is taxes. Indeed, California is one of the most heavily taxed American states. It's no coincidence that some very large companies have left this state. One example is Tesla, which recently chose Texas. Without going into detail, it's important to find out very precisely what taxes you might have to pay, particularly regarding property taxes.