San Francisco is a beautiful place to visit. It is a beautiful city with stunning views of the bay from rolling hills. Yet, it is becoming unaffordable for almost everyone. The middle-class citizens are even struggling to make ends meet. The limited supply of homes and the onset of money resulted in an overheated housing market. With this information, let us get to know the ins and outs of San Francisco, CA.
Quick Facts
- With an average asking price of $1.3 million, San Francisco is the most expensive city in the United States.
- Average rent is more than $1,700.
- There are roughly 390,000 housing units, and about half of them were from before 1940.
- In 2018, the most expensive condo in San Francisco sold for $15 million.
- In San Francisco, the cost of new office space is $81.25 per square foot.
- The majority of San Francisco's residents are between ages 25 and 44.
San Francisco, CA in a Nutshell
San Francisco is a lovely city with historical landmarks and locally-owned businesses. The complex personality of San Francisco's metro attracts a wide range of individuals. These people include retirees, innovative enterprises, and students. Yet, the metro area has not absorbed its growing population due to housing shortage. This phenomenon resulted in skyrocketing housing and an increase in living costs. Some of the excesses went to areas in the Bay Area, such as Oakland and Brisbane. The steady stream of technology workers has the real estate market under pressure.
Economy
San Francisco is well-known for its ties to the technology industry. The city is home to some small technology enterprises and start-ups. But, some travel to Silicon Valley, the heart of the nation's technology economy. Another significant percentage of the city's workforce is working in the financial sector. Business services, retail, tourism, and professional services are among the most popular occupations.
Employment
The state of California's tech employment increased by 51,500 jobs in 2018. This event put the San Francisco metro ahead of larger cities like New York and Los Angeles by job growth. But it's not only technology that brings value to the city's economy and keeps the jobless rate at 2.5 percent. The finance, tourism, and healthcare industries have all grown outside of Silicon Valley. These developments account for some of San Francisco's most significant employment.
Real Estate in San Francisco, CA
San Francisco's cost of living is around 73 percent more than the national average. The high cost of living in San Francisco links to the city's real estate market. The demand for housing is rising as more migrate to the nation's tech capital searching for work. In San Francisco, the median property value is around $1.3 million, while the average monthly rent is around $3,933.
Real Estate Trends
Homes in San Francisco sold for a median price of $1.5 million in December 2021, up 10.2 percent from the previous year. The average time on the market for a home in San Francisco is 31 days, compared to 45 days last year. 523 residences sold in December this year, down from 654 in 2021.
Final Thoughts
San Francisco is sure a great fit for residency for people in the tech industry. Despite the high cost of living, this is a small trade-off for the booming industry and employment. So, if you are looking to buy a property in the following years, consider the things we listed as a guide in your journey to the Bay Area.
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