How San Francisco homebuyers and sellers fared in 2023
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The Fillmore District in San Francisco as seen on June 27. Photo: Philip Pacheco/AFP via Getty Images
San Francisco's real estate market remains one of the most expensive and competitive in the nation, but the year's record-low housing affordability left a mark on the Bay Area.
Why it matters: The Bay Area experienced outsized home-price declines this year.
Zoom in: In San Francisco, home prices decreased almost 0.9% in October from a year earlier and sold for a median price of $1.41 million, according to real estate company Redfin. That month, 410 homes were sold, down from 434 last year.
- The median sale price per square foot also dropped 3.4% from last year to $914.
- Meanwhile, the number of San Francisco metro-area listings available to buy dropped from 1,245 to 1,010 between October 2019 and October 2023, per the latest Redfin data.
- That figure also dropped about 33% from September to October this year.
Yes, but: People in San Francisco — primarily low-wage workers in food services, retail and the arts — are still "moving away from urban cores to suburban areas" for less expensive housing options, city economist Ted Egan told Axios this year.
- If they continue leaving in droves, it could affect San Francisco's long-term economic trajectory, Egan noted.
State of play: The Board of Supervisors approved state-mandated housing policy requirements this week after missing the first deadline in November.
- The provisions include cutting permit approval times in half for most housing projects, streamlining the process for office-to-residential conversions and removing developer fees in some cases.
What to watch: Mayor London Breed has proposed a March 2024 ballot measure that would waive a transfer tax on office-to-residential building conversions in a bid to boost housing development.
- San Francisco voters will also be asked to vote on a $300 million housing bond for low-income housing on the March ballot.
- The city is currently pursuing its "Home by the Bay" plan with several acquisitions of sites that will serve as locations for over 550 affordable homes. Residents would be able to move in by the end of 2028.
Go deeper: San Francisco looks to scale up interim supportive housing