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San Francisco

Located in Northern California, San Francisco sits at the tip of a peninsula bordered by the Pacific Ocean and San Francisco Bay. The city is home to over 880,000 people making it the 4th most populous city in the State of California and the 13th most populated in the United States. The rate of population growth is forecast to be near the national rate in the next year, and with this growth comes more tenants, which is great news for current and future San Francisco real estate investors. In fact, more than 63% of residents in the city live in rental properties as opposed to owning their own homes, according to NeighborhoodScout.

Not only has the San Francisco rental market been leading the nation for years, but its economy has also made a mark on the nation and the world. The city is located at the halfway point between London and Tokyo, making it a world economic center. Because of this, a major part of the local economy is shipping and trade. The city is also a major banking and financing hub as it is home to some of the largest banks in the US as well as over 30 international financial institutions. San Francisco is known as a major tech center. The neighborhood of South Park, specifically, is home to many rising tech companies. Other leading industries include tourism, apparel manufacturing, healthcare, and education.

Even though the city currently boasts a strong and growing economy, the San Francisco real estate market and its affordability could have a negative impact on its health. San Francisco real estate properties are notoriously known for being expensive, and some experts see the continuing appreciation as being detrimental to the growth of the economy. This issue is further exacerbated by the shortage in housing inventory which has lead to a serious imbalance between supply and demand. This can be attributed to the rising costs of construction as well as stringent regulations. Not only has this caused an increase in property prices, but local rental rates continue to rise as well. However, according to the annual real estate report put out by the PWC, there are some solutions on the horizon. With new construction processes planned for implementation in the San Francisco housing market as well as an increase in urbanized suburban developments, the real estate forecast points to some breathing room in the near future.

According to the same report, San Francisco ranks in the top 10 US markets in the Pacific Region for overall real estate prospects. Essentially, if you can afford to buy a San Francisco investment property, then the market can be a great place to invest in real estate.

San Francisco Realtors and Real Estate Agents


San Francisco  Real Estate Investment Performance
Facts and Market Trends in San Francisco
Homes For Sale404
Airbnb Properties1,145
Rental Properties1,557
Traditional Vacancy rate4.70%
Airbnb Occupancy Rate57.73%
Mashmeter69.86%
Median Price$1,199,000
Median Rent Price$4,214
Price/sqft$1,032
Median Days on Market103
Price to Rent Ratio29.5
Average Cap Rate
Airbnb0.21%
Traditional1.44%
Average Rental Income
Airbnb$3,148
Traditional$4,049
 
Median Household Income$78,378
Population884,363
Transportation in San Francisco
86 / 100
Very Walkable
80 / 100
Excellent Transit
71 / 100
Very Bikeable
San Francisco  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$1,833$2,252$2,999$4,129$6,094
Traditional$2,993$2,966$3,894$4,798$5,372
San Francisco, CA - Homes for Sale - Newly Listed
$1,649,000
MLS 421537636
1375 Kansas Street
San Francisco, CA 94107
Potrero Hill
Single Family Residential
3 beds2 baths1,724 sq.ft.
CAP RATE
Trad. 1.26%Airbnb 1.11%
$695,000
MLS 421538122
1125 Church Street #A
San Francisco, CA 94114
Noe Valley
Other
1 beds1 baths0 sq.ft.
CAP RATE
Trad. 3.14%Airbnb 3.25%
$1,695,000
MLS 421538287
318 Winfield Street
San Francisco, CA 94110
Bernal Heights
Single Family Residential
3 beds2 baths0 sq.ft.
CAP RATE
Trad. 1.55%Airbnb -1.18%
$1,595,000
MLS 421526906
338 Main Street #17F
San Francisco, CA 94105
South Beach
Condo/Coop
2 beds2 baths1,181 sq.ft.
CAP RATE
Trad. 1.75%Airbnb -0.15%
Top Performing San Francisco Properties
$999,000
MLS 421531020
1153 Sanchez Street
San Francisco, CA 94114
Noe Valley
Condo/Coop
3 beds1 baths984 sq.ft.
CAP RATE
Trad. 2.78%Airbnb 5.96%
$1,295,000
MLS 421518328
266 Red Rock Way #B
San Francisco, CA 94131
Diamond Heights
Condo/Coop
4 beds3 baths1,635 sq.ft.
CAP RATE
Trad. 3.32%Airbnb 5.30%
$1,795,000
MLS 421524288
1380 Church Street
San Francisco, CA 94114
Noe Valley
Condo/Coop
4 beds2 baths2,287 sq.ft.
CAP RATE
Trad. 1.57%Airbnb 4.90%
$1,199,000
MLS 421530326
5118 A Diamond Heights Boulevard
San Francisco, CA 94131
Noe Valley
Condo/Coop
3 beds2 baths1,500 sq.ft.
CAP RATE
Trad. 2.02%Airbnb 4.68%
Recently Sold Homes in San Francisco, CA
$959,000
MLS 421521214
1762 La Salle Avenue
San Francisco, CA 94124
Silver Terrace
Multi Family
0 beds0 baths1,555 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$1,688,000
MLS 421523682
1795 1797 Oakdale Avenue
San Francisco, CA 94124
Silver Terrace
Multi Family
0 beds0 baths2,856 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$1,150,000
MLS 40939531
1748 La Salle Ave
San Francisco, CA 94124
Silver Terrace
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$3,750,000
MLS 511802
289 Divisadero
San Francisco, CA 94117
Buena Vista Park
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Property Value Changes and Real Estate Appreciation in the San Francisco Housing Market

Naturally, with the high real estate property prices in the San Francisco real estate market comes significant appreciation over the years. Since Q1 of 2000, properties here have experienced a total appreciation in value of 172.36% for an annual average growth rate of 5.34%. This puts the San Francisco housing market among the best places to invest for real estate appreciation in the nation.

Even with the tight inventory and the high property prices, the city is currently a buyer’s market. So, while you may still pay premium prices for a San Francisco real estate investment, your chances for getting a good deal if you negotiate are high at the moment.

San Francisco, CA Top Multi Family Homes
$895,000
MLS 510436
147 149 Caledonia Street
San Francisco, CA 94103
Mission
Multi Family
0 beds0 baths1,824 sq.ft.
CAP RATE
Trad. 5.73%Airbnb N/A
$1,095,000
MLS 514238
359 361 Hearst Avenue
San Francisco, CA 94112
Sunnyside
Multi Family
0 beds0 baths2,100 sq.ft.
CAP RATE
Trad. 1.91%Airbnb N/A
$1,690,000
MLS 502387
330 8th Avenue
San Francisco, CA 94118
Inner Richmond
Multi Family
0 beds0 baths3,118 sq.ft.
CAP RATE
Trad. 1.78%Airbnb N/A
$1,900,000
MLS 501195
2310 Bryant Street
San Francisco, CA 94110
Mission
Multi Family
0 beds0 baths1,838 sq.ft.
CAP RATE
Trad. 1.58%Airbnb N/A
Homes Below Median Price in the San Francisco, CA Real Estate Market
$999,000
MLS 421531020
1153 Sanchez Street
San Francisco, CA 94114
Noe Valley
Condo/Coop
3 beds1 baths984 sq.ft.
CAP RATE
Trad. 2.78%Airbnb 5.96%
$1,295,000
MLS 421518328
266 Red Rock Way #B
San Francisco, CA 94131
Diamond Heights
Condo/Coop
4 beds3 baths1,635 sq.ft.
CAP RATE
Trad. 3.32%Airbnb 5.30%
$1,795,000
MLS 421524288
1380 Church Street
San Francisco, CA 94114
Noe Valley
Condo/Coop
4 beds2 baths2,287 sq.ft.
CAP RATE
Trad. 1.57%Airbnb 4.90%
$1,199,000
MLS 421530326
5118 A Diamond Heights Boulevard
San Francisco, CA 94131
Noe Valley
Condo/Coop
3 beds2 baths1,500 sq.ft.
CAP RATE
Trad. 2.02%Airbnb 4.68%
San Francisco Airbnb Growth and Regulations

San Francisco is the birthplace of Airbnb and its headquarters can currently be found in the city. Since its launch, local officials have worked with the company to legalize and regulate the home-sharing industry in the San Francisco real estate market. Even though the practice is legal, the city has some of the strictest Airbnb regulations in the US. For example, if you’re looking to invest in a non-owner occupied rental property, know that it is outlawed. In order to operate a short-term rental legally in the city, the property must be your permanent residence, meaning you live on site for at least 275 days out of the year. In addition to this, Airbnb San Francisco hosts cannot rent out a property for more than 90 days while not being present overnight.

Another important short-term rental law is that you must be registered with the local Treasurer and Tax Collector as a business entity. You must also obtain a certified host certificate from the City of San Francisco’s Office of Short-Term Rentals. If you’re not, Airbnb and other vacation rental websites will be forced to remove your listing from their website. San Francisco Airbnb hosts are not allowed to have more than one vacation rental property listing at a time.

Airbnb rental properties are also subject to San Francisco’s lodging tax which is 14%. Airbnb collects this tax on behalf of its hosts, but if you list with another vacation rental website, you will be responsible for collecting and remitting the tax to the city. Any violations of these Airbnb regulations will result in serious fines.

Despite these strict short-term rental laws, Airbnb growth is widespread in the city. In February of 2019, there were more than 7,800 listings - an increase of 22% since the laws were put into effect in early 2018.

San Francisco, CA Top Airbnb Homes
$103 per night
$143 per night
Entire home/apt · 4 beds
Charming Cole Valley Private Suite
683
$142 per night
$157 per night
Entire home/apt · 2 beds
Golden Gate Park & Beach Getaway!
537
San Francisco, CA Homes for Rent
$3,899
MLS 421538391
355 1st Street #S1107
San Francisco, CA
South Beach
Apartment
2 beds0 baths1,034 sq.ft.
$3,250
MLS ML81833730
1486 Jackson 1486A
San Francisco, CA
Nob Hill
Apartment
2 beds1 baths3,400 sq.ft.
$4,250
MLS 421537803
27 Shawnee Avenue
San Francisco, CA
Crocker Amazon
Single Family
3 beds0 baths1,355 sq.ft.
$2,888
MLS 421538010
San Francisco, CA Open Houses
Open 1 PM to 4 PM
$1,265,000
MLS 511199
2750 Market Street #301
San Francisco, CA 94114
Corona Heights
Condo/Coop
2 beds2 baths1,528 sq.ft.
CAP RATE
Trad. 1.31%Airbnb -0.01%
Open 10:30 AM to 12:30 PM
$2,295,000
MLS 507382
2135 California Street #A
San Francisco, CA 94115
Pacific Heights
Other
4 beds4 baths2,182 sq.ft.
CAP RATE
Trad. 0.73%Airbnb -0.37%
Open 12 PM to 5 PM
$1,545,000
MLS 514873
514 Church Street
San Francisco, CA 94114
Duboce Triangle
Condo/Coop
3 beds1 baths1,675 sq.ft.
CAP RATE
Trad. 1.36%Airbnb 2.89%
Open 11 AM to 5 PM
$1,098,000
MLS 515533
401 Harrison Street #38A
San Francisco, CA 94105
South Beach
Condo/Coop
1 beds1 baths840 sq.ft.
CAP RATE
Trad. 0.46%Airbnb -1.18%
Best San Francisco Neighborhoods for Buying Investment Property
85%
Mashmeter
property price
$825,000
Median
cap rate
6.33%
Traditional
7.49%
Airbnb
rental income
$4,350
Traditional
$5,149
Airbnb
homes for sale
3
occupancy rate
59%
Airbnb
85%
Mashmeter
property price
$1,595,000
Median
cap rate
3.66%
Traditional
3.54%
Airbnb
rental income
$4,860
Traditional
$4,704
Airbnb
homes for sale
5
occupancy rate
58%
Airbnb
89%
Mashmeter
property price
$1,595,000
Median
cap rate
3.54%
Traditional
4.11%
Airbnb
rental income
$4,706
Traditional
$5,463
Airbnb
homes for sale
3
occupancy rate
60%
Airbnb
60%
Mashmeter
property price
$2,274,000
Median
cap rate
2.14%
Traditional
2.71%
Airbnb
rental income
$4,056
Traditional
$5,131
Airbnb
homes for sale
4
occupancy rate
57%
Airbnb
61%
Mashmeter
property price
$2,924,500
Median
cap rate
2.40%
Traditional
2.26%
Airbnb
rental income
$5,840
Traditional
$5,499
Airbnb
homes for sale
2
occupancy rate
59%
Airbnb