The San Francisco real estate market didn’t change much in 2019 compared to previous years. It remains one of the most expensive housing markets in the entire world. It continues to defy all odds with its low unemployment rates in contrast with a GDP that has recently exceeded $100.000. The urban economy continues to rise, which in turn aids the GDP’s growth rate of 29% in the last half a decade. The economic health is connected to San Francisco’s growing population, and the ever-rising costs give many opportunities for investors to realize profits if they stick on the side of the traditional buy-and-hold strategy.
San Francisco is home to nearly 900,000 people in the heart of a metro area housing nearly nine million. It was once amongst the most densely populated cities of the US, and today – it looks much like New York did in the 1970s – expansive apartments with crowded streets.
However, new projects are moving into the San Francisco real estate world fast, as Google is signing a ten-year plan to build 15,000 new homes in the Bay Area. This movement will make housing more affordable in the nearer future. However, affordable housing for such a large number of people will, in return, just make the area more wanted for investments, so values are expected to continue rising.
According to data collected by Zillow, home values have gone up by 0.5% over the past year, and the prediction is that 2020 will raise this percentage up to 0.7%. This trend is not expected to slow down in the nearer future, either.
The average price per square foot rose from $1,146 to $1,157 over the past year only. The median price of rent for apartments per month is estimated to be $4,200. The rising numbers don’t equal a steady pace, in March this year – prices rapidly dropped, only to go back again during the summer. The reason is that the median value of San Francisco homes currently exceeds medial prices in the rest of the US, which is disheartening.
However, the summer weather always has investors coming back to San Francisco and California for more.
Homes still sell in as little as 17 days. There are currently around 1300 homes for sale, ranging from $95K to $45M. The prices and options for real estate in San Francisco vary widely by neighborhood. These high figures may make investors rethink their options. However, while the San Francisco real estate market is expensive, it is also in high demand due to the ever-rising population and desirability of the area.
Buying estates in the San Francisco region might seem like a risky initial investment, but the figures of the past couple of years show that there is virtually no chance that the area will become any less wanted unless any natural disaster occurs. Buying property and holding onto it until it achieves a considerable rise in value might prove to be more profitable than one might think. Re-selling is one thing, but local demand also accounts for an active rental market, which may pay off your initial investment within the first couple of years.