The Golden City Loses Its Shine
Housing prices in San Francisco have plummeted to pre-pandemic levels amid widespread layoffs in the tech sector, SFGATE reports.
Housing Prices Plummet
Despite still being one of the more expensive metropolitan areas in the US, prices for condominiums and co-ops in the city were down 14.7% from May 2022 and now average $986,000. Those prices have not been seen since 2015, according to Zillow data analyzed by Wolf Street.
Single-Family Homes Hit 2019 Levels
SFGATE and Wolf Street reported that the prices of single-family homes have hit 2019 levels in San Francisco. Single-family homes are down 15.4% from their peak in 2022, now at an average of $1.39 million, according to data provided to SFGATE by a Zillow representative.
The Millennium Tower Sees Significant Decrease
The Millennium Tower, notorious for being the leaning tower of San Francisco, saw a 44% decrease in price per unit. In September, SFGATE reports, one condo sold for $615,000. A decade prior, it sold for $1.1 million.
Layoffs Coincide with Housing Price Decreases
The decrease in housing costs coincides with widespread tech layoffs, according to Wolf Street, which reported that the “Information” industry saw a 20% decrease in its workforce over more than two years since its peak. In the “Professional, Scientific, and Technical Services” industry, there was a 7% decrease in employees compared to June 2022.
According to SFGATE, there were 10,200 permanent layoffs filed in the city during 2023.
National Association of Realtors Predicts Home Price Increase
In a recent report, the National Association of Realtors (NAR) stated that home prices across the country are predicted to go up in 2025, albeit much slower than years prior, estimating a 2% increase in cost to a median of $410,700.
“Home buyers will have more success next year,” Lawrence Yun, NAR’s chief economist and senior vice president of research, said in the report. “The worst of the affordability challenges are over as more inventory, stable mortgage rates and continued job and income growth pave the way for more Americans to achieve homeownership.”
Conclusion
The housing market in San Francisco has taken a significant hit due to widespread layoffs in the tech sector. With prices plummeting to pre-pandemic levels, it may be a buyer’s market for those looking to purchase a home in the city. However, it remains to be seen how the market will recover and what the future holds for housing prices in San Francisco.
FAQs
Q: What is the current average price of condominiums and co-ops in San Francisco?
A: The current average price of condominiums and co-ops in San Francisco is $986,000, down 14.7% from May 2022.
Q: What is the current average price of single-family homes in San Francisco?
A: The current average price of single-family homes in San Francisco is $1.39 million, down 15.4% from their peak in 2022.
Q: What is the predicted increase in home prices across the country in 2025?
A: According to the National Association of Realtors, home prices across the country are predicted to increase by 2% in 2025, with a median cost of $410,700.
