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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 Sale432
Airbnb Properties1,773
Rental Properties1,359
Traditional Vacancy rate6.70%
Airbnb Occupancy Rate77.02%
Mashmeter71.53%
Median Price$1,633,619
Median Rent Price$4,505
Price/sqft$1,047
Median Days on Market67
Price to Rent Ratio30.7
Average Cap Rate
Airbnb1.81%
Traditional0.68%
Average Rental Income
Airbnb$6,504
Traditional$4,437
 
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$3,399$3,845$5,519$7,202$10,796
Traditional$3,645$2,789$3,741$4,684$5,009
San Francisco, CA - Homes for Sale - Newly Listed
Investment Properties for Sale
$2,349,000
MLS 492491
1645 Pacific Avenue #4D
San Francisco, CA 94109
Nob Hill
Condo/Coop
2 beds0 baths1,402 sq.ft.
CAP RATE
Trad. -0.02%Airbnb 0.17%
Investment Properties for Sale
$704,442
MLS
26 Bernice St
San Francisco, CA 94103
South of Market
Condo/Coop
beds1 baths891 sq.ft.
CAP RATE
Trad. 3.62%Airbnb 0.80%
Investment Properties for Sale
$799,000
MLS 492295
140 South Van Ness Avenue #711
San Francisco, CA 94103
Hayes Valley
Condo/Coop
1 beds1 baths795 sq.ft.
CAP RATE
Trad. -0.40%Airbnb 1.47%
Investment Properties for Sale
$920,000
MLS 490461
78 Tioga Avenue
San Francisco, CA 94134
Little Hollywood
Single Family Residential
3 beds0 baths1,800 sq.ft.
CAP RATE
Trad. 1.63%Airbnb 2.50%
Top Performing San Francisco Properties
Investment Properties for Sale
$301,613
MLS 486651
95 Ora Way #F105
San Francisco, CA 94131
Glen Park
Condo/Coop
0 beds0 baths480 sq.ft.
CAP RATE
Trad. 7.35%Airbnb 7.63%
Investment Properties for Sale
$1,495,000
MLS 491605
1854 Great Highway
San Francisco, CA 94122
Outer Sunset
Single Family Residential
4 beds2 baths1,612 sq.ft.
CAP RATE
Trad. 0.30%Airbnb 6.78%
Investment Properties for Sale
$1,595,000
MLS 489467
1722 Larkin
San Francisco, CA 94109
Nob Hill
Other
3 beds2 baths1,950 sq.ft.
CAP RATE
Trad. 1.07%Airbnb 6.70%
Investment Properties for Sale
$675,000
MLS 492399
1555 Geary Boulevard #5
San Francisco, CA 94115
Western Addition
Other
2 beds0 baths850 sq.ft.
CAP RATE
Trad. 2.07%Airbnb 6.62%
Recently Sold Homes in San Francisco, CA
Investment Properties for Sale
$1,495,000
MLS 486162
24 Powers Avenue
San Francisco, CA 94110
Bernal Heights
Multi Family
6 beds3 baths2,315 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$2,395,000
MLS ML81773535
165 Beaver ST
San Francisco, CA 94114
Corona Heights
Multi Family
3 beds0 baths2,760 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$1,799,000
MLS 492309
3763 17th Street
San Francisco, CA 94114
Duboce Triangle
Multi Family
0 beds0 baths2,100 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$968,000
MLS 489560
3655 16th Street
San Francisco, CA 94110
Mission
Multi Family
4 beds2 baths1,785 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
Investment Properties for Sale
$999,999
MLS 40876912
242 Holloway Ave
San Francisco, CA 94112
Ingleside
Multi Family
0 beds0 baths3,250 sq.ft.
CAP RATE
Trad. 2.95%Airbnb N/A
Investment Properties for Sale
$1,900,000
MLS 491922
670 Pennsylvania
San Francisco, CA 94107
Potrero Hill
Multi Family
4 beds2 baths0 sq.ft.
CAP RATE
Trad. 2.84%Airbnb N/A
Investment Properties for Sale
$1,200,000
MLS 21927512
47 Vesta Street
San Francisco, CA 94124
Silver Terrace
Multi Family
6 beds4 baths3,458 sq.ft.
CAP RATE
Trad. 2.42%Airbnb N/A
Investment Properties for Sale
$1,495,000
MLS 485073
522 Natoma Street
San Francisco, CA 94103
South of Market
Multi Family
10 beds6 baths0 sq.ft.
CAP RATE
Trad. 2.04%Airbnb N/A
Homes Below Median Price in the San Francisco, CA Real Estate Market
Investment Properties for Sale
$301,613
MLS 486651
95 Ora Way #F105
San Francisco, CA 94131
Glen Park
Condo/Coop
0 beds0 baths480 sq.ft.
CAP RATE
Trad. 7.35%Airbnb 7.63%
Investment Properties for Sale
$1,495,000
MLS 491605
1854 Great Highway
San Francisco, CA 94122
Outer Sunset
Single Family Residential
4 beds2 baths1,612 sq.ft.
CAP RATE
Trad. 0.30%Airbnb 6.78%
Investment Properties for Sale
$1,595,000
MLS 489467
1722 Larkin
San Francisco, CA 94109
Nob Hill
Other
3 beds2 baths1,950 sq.ft.
CAP RATE
Trad. 1.07%Airbnb 6.70%
Investment Properties for Sale
$675,000
MLS 492399
1555 Geary Boulevard #5
San Francisco, CA 94115
Western Addition
Other
2 beds0 baths850 sq.ft.
CAP RATE
Trad. 2.07%Airbnb 6.62%
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
San Francisco Airbnb
$115 per night
Entire home/apt · 1 bed
Garden Suite Private Bathrm GGPark
763
San Francisco Airbnb
$106 per night
Entire home/apt · 1 bed
Cozy Suite Private Bathrm by GGPark
701
San Francisco Airbnb
$239 per night
Entire home/apt · 0 bed
Potrero Hill Garden Lookout
576
San Francisco Airbnb
$157 per night
Entire home/apt · 1 bed
Tranquil Suite Oasis
571
San Francisco, CA Homes for Rent
Investment Properties for Sale
$5,950
MLS 492531
200 Brannan Street
San Francisco, CA
South Beach
Apartment
0 beds0 baths1,362 sq.ft.
Investment Properties for Sale
$4,995
MLS SW19263240
74 Crestline Drive
San Francisco, CA
Twin Peaks
Apartment
2 beds1 baths900 sq.ft.
Investment Properties for Sale
$5,800
MLS 492516
660 Natoma Street
San Francisco, CA
South of Market
Apartment
0 beds0 baths1,290 sq.ft.
Investment Properties for Sale
$7,500
MLS 492503
32 Collins
San Francisco, CA
Laurel Heights
Apartment
0 beds0 baths2,005 sq.ft.
San Francisco, CA Open Houses
Investment Properties for Sale
Open 2 PM to 4 PM
$799,000
MLS 492295
140 South Van Ness Avenue #711
San Francisco, CA 94103
Hayes Valley
Condo/Coop
1 beds1 baths795 sq.ft.
CAP RATE
Trad. -0.40%Airbnb 1.47%
Investment Properties for Sale
Open 1 PM to 4 PM
$2,399,000
MLS 490998
333 Bush Street #4206
San Francisco, CA 94104
Chinatown
Condo/Coop
2 beds2 baths1,798 sq.ft.
CAP RATE
Trad. -2.41%Airbnb -1.28%
Investment Properties for Sale
Open 1:30 PM to 4 PM
$699,000
MLS 492353
1817 California Street #207
San Francisco, CA 94109
Pacific Heights
Condo/Coop
1 beds1 baths537 sq.ft.
CAP RATE
Trad. 0.70%Airbnb 3.75%
Investment Properties for Sale
Open 5:30 PM to 7 PM
$899,000
MLS 488103
531 Kirkham Street
San Francisco, CA 94122
Inner Sunset
Other
3 beds2 baths1,100 sq.ft.
CAP RATE
Trad. 1.48%Airbnb 3.74%
Best San Francisco Neighborhoods for Buying Investment Property
72%
Mashmeter
property price
$1,548,500
Median
cap rate
4.93%
Traditional
6.20%
Airbnb
rental income
$6,367
Traditional
$8,005
Airbnb
homes for sale
2
occupancy rate
84%
Airbnb
71%
Mashmeter
property price
$1,841,000
Median
cap rate
2.58%
Traditional
5.33%
Airbnb
rental income
$3,952
Traditional
$8,171
Airbnb
homes for sale
8
occupancy rate
84%
Airbnb
83%
Mashmeter
property price
$1,299,000
Median
cap rate
3.80%
Traditional
7.75%
Airbnb
rental income
$4,112
Traditional
$8,393
Airbnb
homes for sale
22
occupancy rate
85%
Airbnb
87%
Mashmeter
property price
$857,000
Median
cap rate
5.03%
Traditional
11.40%
Airbnb
rental income
$3,593
Traditional
$8,139
Airbnb
homes for sale
4
occupancy rate
84%
Airbnb
84%
Mashmeter
property price
$1,149,000
Median
cap rate
3.57%
Traditional
9.09%
Airbnb
rental income
$3,416
Traditional
$8,705
Airbnb
homes for sale
17
occupancy rate
83%
Airbnb