San Francisco’s Housing Market Sees a Surge in Interest
Despite ongoing challenges like homelessness and a drop in population, San Francisco’s housing market is experiencing a renewed interest from potential buyers. A recent report highlights that the percentage of local views on listings in the city saw a bump from 62.9% in spring 2025 from 68.9% the year before.
Economist Jiayi Xu looked into the demand across 100 major cities in the U.S., focusing on how users interacted with real estate listings. She compared urban home views with those of local residents browsing elsewhere.
Interestingly, while many cities see over half of their online traffic directed to homes outside their local areas, San Francisco is a bit of an outlier. Even with its high living costs, rising housing prices, and increasing unemployment, the city is still attracting attention.
This June, the median home price in San Francisco reached $998,500, which is a 4% increase from the same time six years prior. It’s worth noting that this city is among the top choices for local buyers, despite the cost.
From May 2019 to May 2025, unemployment in San Francisco increased from 2.3% to 3.9%. Yet, locals still seem eager to invest in homes in their own neighborhoods.
Comparatively Affordable Options
Part of the reason for this trend appears to be that some nearby cities have prices that are even more daunting. For instance, in June, San Jose—an area synonymous with tech industry giants—recorded a staggering median home price of $1,419,000, forcing many residents to dedicate over 72% of their income to housing.
In contrast, those earning a median income in San Francisco need to set aside less than 60% of their earnings for housing costs. Xu notes that while San Francisco is indeed pricey, the region has provided some respite compared to other nearby markets that have become even less affordable.
Signs of Urban Improvement
Another factor contributing to the renewed interest in San Francisco’s housing market is the city’s ongoing urban improvement plan. This initiative, which aims to tackle issues like crime and homelessness, is showing some early positive results.
Mayor Daniel Lully has been proactive since assuming office in January, committing to strategies aimed at reducing crime and cleaning up public spaces. Early efforts have included organized cleanups in known problem areas and ensuring that anyone receiving city-assisted drug supplies also gets connected to recovery services.
Interestingly, the housing market is reacting positively. Median prices downtown have surged by over 50% year-on-year as signs of improvement emerge. The tech industry, particularly the AI sector, also seems to factor into this renaissance, as leaders suggest that the growth potential tied to AI is drawing both workers and investment back to the city.
“AI is what’s bringing San Francisco back,” Nvidia CEO Jensen Huang recently noted, emphasizing a business resurgence that many residents feel is palpable.
While cities like Portland and Houston have seen a decline in interest in local home shopping compared to six years ago, San Francisco is managing a somewhat stable demand. It ranks second in shifts regarding local home viewership, a shift that reflects residents’ desire to remain within urban centers offering diverse employment and attractive amenities.
