The surprising way San Francisco has become more affordable in the last 20 years
That's according to an analysis of data from the U.S. Census Bureau and real estate company Zillow. The Chronicle calculated how many households could buy a mid-priced home — including co-ops and condominiums — while keeping their housing payments below 30% of their income.
The value of a typical San Francisco home grew by a whopping 66%, from $780,000 to $1.29 million, over the past two decades. But incomes have more than doubled over the same period, from about $58,000 to $127,000 in 2023 (roughly $136,000 in 2025 dollars).
While the data indicates more San Franciscans can afford to own a home, the rapid increase in incomes since 2005 is due in part to many of the city's lower-income residents leaving, often pushed out by the city's high housing costs. And homeownership is still out of reach for the vast majority of San Francisco households, as measured by income levels.
The Chronicle's analysis was based on Zillow's typical home value for each neighborhood in June 2005 and June 2025, assuming a 20% down payment, the San Francisco property tax rate for those years and the average 30-year mortgage rate for those months. The income estimates for 2025 were based on the Census Bureau's 2023 estimates, adjusted for inflation to 2025. The analysis did not include insurance costs or homeowners association fees, which have climbed rapidly in recent years.
The most affordable neighborhoods in 2025 are generally located in and around downtown San Francisco, with more than 40% of households able to afford the typical home in the Tenderloin, Lower Nob Hill and Civic Center. Those neighborhoods, where the bulk of the city's new housing over the past two decades has been concentrated, have also become affordable to many more households since 2005.
Only one neighborhood is affordable to a smaller share of San Francisco households than it was in 2005 — Hunters Point, where housing costs have grown at a faster rate than any other neighborhood, though the neighborhood has relatively low home values.
The fact that more households can afford a home doesn't help the families that have already left San Francisco. Several economic changes to the region — the tech boom, the 2008 financial crisis, the pandemic — resulted in lower-income households moving out and, in some cases, higher-income households moving in.
Of course, not everyone who can buy a home wants to. Renting a home in the Bay Area is often much more affordable than purchasing one, and not everyone wants to live in downtown San Francisco, where most of the for-sale homes are condominiums. And then there's the issue of affording a $300,000 down payment, which is much harder for a first-time homebuyer than someone coming with cash from a previous sale.
On the other hand, many San Francisco households have decided that owning a home in the city is worth exceeding the 'affordability' threshold. About a third of San Francisco households with a mortgage pay at least 30% of their income toward housing costs, Census Bureau data shows.
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Newsweek
6 hours ago
- Newsweek
House Prices Falling Nationwide in Worrying Sign for Economy
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Yahoo
12 hours ago
- Yahoo
The Raise Needed To Afford a Home in 50 of America's Most Popular Metros
Could your next raise at work be enough money to buy a home? Learn More: See Next: A recent Zillow study outlined how much of a raise is needed to afford typical mortgage payments in 50 of the nation's most popular metropolitan areas. Buying a home in 11 major cities, including Miami, Boston and New York, requires receiving a raise of $50,000 or more. Just how much more? Try a six-figure raise, which is required to afford four hot California real estate markets: San Jose, San Francisco, Los Angeles and San Diego. Take a look at the raise needed, from the highest to lowest amount, to afford a home in 50 of the nation's most popular metros. 1. San Jose, California Raise needed to afford a typical mortgage payment (20% down): $251,597 Typical home value: $1,649,985 Typical mortgage payment: $8,619 Median income: $162,837 Find Out: Explore Next: 2. San Francisco Raise needed to afford a typical mortgage payment (20% down): $165,566 Typical home value: $1,165,757 Typical mortgage payment: $6,090 Median income: $135,311 Trending Now: 3. Los Angeles Raise needed to afford a typical mortgage payment (20% down): $149,375 Typical home value: $973,190 Typical mortgage payment: $5,084 Median income: $98,204 4. San Diego Raise needed to afford a typical mortgage payment (20% down): $128,954 Typical home value: $945,140 Typical mortgage payment: $4,937 Median income: $111,160 5. New York City Raise needed to afford a typical mortgage payment (20% down): $99,343 Typical home value: $705,108 Typical mortgage payment: $3,683 Median income: $102,042 6. Seattle Raise needed to afford a typical mortgage payment (20% down): $84,356 Typical home value: $767,553 Typical mortgage payment: $4,010 Median income: $118,074 7. Boston Raise needed to afford a typical mortgage payment (20% down): $78,703 Typical home value: $733,270 Typical mortgage payment: $3,831 Median income: $117,605 Read More: 8. Riverside, California Raise needed to afford a typical mortgage payment (20% down): $60,685 Typical home value: $591,424 Typical mortgage payment: $3,090 Median income: $94,263 9. Miami Raise needed to afford a typical mortgage payment (20% down): $59,379 Typical home value: $482,204 Typical mortgage payment: $2,519 Median income: $81,901 10. Sacramento, California Raise needed to afford a typical mortgage payment (20% down): $53,660 Typical home value: $590,697 Typical mortgage payment: $3,086 Median income: $101,854 11. Providence, Rhode Island Raise needed to afford a typical mortgage payment (20% down): $50,418 Typical home value: $507,954 Typical mortgage payment: $2,654 Median income: $88,937 12. Portland, Oregon Raise needed to afford a typical mortgage payment (20% down): $48,708 Typical home value: $561,374 Typical mortgage payment: $2,933 Median income: $101,275 13. Denver Raise needed to afford a typical mortgage payment (20% down): $43,588 Typical home value: $592,884 Typical mortgage payment: $3,097 Median income: $109,707 Check Out: 14. Salt Lake City Raise needed to afford a typical mortgage payment (20% down): $40,038 Typical home value: $559,930 Typical mortgage payment: $2,925 Median income: $100,944 15. Milwaukee Raise needed to afford a typical mortgage payment (20% down): $36,519 Typical home value: $374,133 Typical mortgage payment: $1,954 Median income: $82,182 16. Las Vegas Raise needed to afford a typical mortgage payment (20% down): $29,140 Typical home value: $440,327 Typical mortgage payment: $2,300 Median income: $80,966 17. Austin, Texas Raise needed to afford a typical mortgage payment (20% down): $27,545 Typical home value: $451,858 Typical mortgage payment: $2,360 Median income: $104,736 18. Tampa, Florida Raise needed to afford a typical mortgage payment (20% down): $27,198 Typical home value: $368,374 Typical mortgage payment: $1,924 Median income: $77,567 Be Aware: 19. Washington, D.C. Raise needed to afford a typical mortgage payment (20% down): $26,513 Typical home value: $587,645 Typical mortgage payment: $3,070 Median income: $129,410 20. Orlando, Florida Raise needed to afford a typical mortgage payment (20% down): $26,497 Typical home value: $393,884 Typical mortgage payment: $2,058 Median income: $83,211 21. Nashville, Tennessee Raise needed to afford a typical mortgage payment (20% down): $25,508 Typical home value: $459,668 Typical mortgage payment: $2,401 Median income: $90,907 22. Phoenix Raise needed to afford a typical mortgage payment (20% down): $22,500 Typical home value: $456,834 Typical mortgage payment: $2,386 Median income: $90,936 23. Jacksonville, Florida Raise needed to afford a typical mortgage payment (20% down): $19,202 Typical home value: $357,233 Typical mortgage payment: $1,866 Median income: $80,999 See More: 24. Dallas Raise needed to afford a typical mortgage payment (20% down): $17,448 Typical home value: $377,186 Typical mortgage payment: $1,970 Median income: $92,403 25. Raleigh, North Carolina Raise needed to afford a typical mortgage payment (20% down): $16,602 Typical home value: $450,409 Typical mortgage payment: $2,353 Median income: $102,629 26. Philadelphia Raise needed to afford a typical mortgage payment (20% down): $16,344 Typical home value: $382,466 Typical mortgage payment: $1,998 Median income: $91,803 27. Hartford, Connecticut Raise needed to afford a typical mortgage payment (20% down): $16,104 Typical home value: $384,822 Typical mortgage payment: $2,010 Median income: $98,311 28. Charlotte, North Carolina Raise needed to afford a typical mortgage payment (20% down): $15,302 Typical home value: $390,896 Typical mortgage payment: $2,042 Median income: $86,836 That's Interesting: 29. Atlanta Raise needed to afford a typical mortgage payment (20% down): $14,735 Typical home value: $389,097 Typical mortgage payment: $2,033 Median income: $92,240 30. Virginia Beach, Virginia Raise needed to afford a typical mortgage payment (20% down): $13,898 Typical home value: $363,937 Typical mortgage payment: $1,901 Median income: $84,756 31. Richmond, Virginia Raise needed to afford a typical mortgage payment (20% down): $12,816 Typical home value: $388,273 Typical mortgage payment: $2,028 Median income: $90,355 32. New Orleans Raise needed to afford a typical mortgage payment (20% down): $10,543 Typical home value: $253,141 Typical mortgage payment: $1,322 Median income: $65,252 33. Minneapolis Raise needed to afford a typical mortgage payment (20% down): $8,627 Typical home value: $389,105 Typical mortgage payment: $2,033 Median income: $100,980 Discover More: 34. Baltimore Raise needed to afford a typical mortgage payment (20% down): $8,104 Typical home value: $402,127 Typical mortgage payment: $2,101 Median income: $100,217 35. San Antonio, Texas Raise needed to afford a typical mortgage payment (20% down): $8,064 Typical home value: $286,497 Typical mortgage payment: $1,497 Median income: $77,645 36. Kansas City, Missouri Raise needed to afford a typical mortgage payment (20% down): $7,383 Typical home value: $319,698 Typical mortgage payment: $1,670 Median income: $84,445 37. Houston Raise needed to afford a typical mortgage payment (20% down): $6,304 Typical home value: $314,262 Typical mortgage payment: $1,642 Median income: $84,254 38. Columbus, Ohio Raise needed to afford a typical mortgage payment (20% down): $2,561 Typical home value: $330,668 Typical mortgage payment: $1,727 Median income: $82,062 For You: 39. Memphis, Tennessee Raise needed to afford a typical mortgage payment (20% down): $807 Typical home value: $246,017 Typical mortgage payment: $1,285 Median income: $68,015 40. Chicago Raise needed to afford a typical mortgage payment (20% down): -$187 Typical home value: $341,695 Typical mortgage payment: $1,785 Median income: $92,838 41. Louisville, Kentucky Raise needed to afford a typical mortgage payment (20% down): -$855 Typical home value: $271,731 Typical mortgage payment: $1,420 Median income: $73,137 42. Detroit Raise needed to afford a typical mortgage payment (20% down): -$1,804 Typical home value: $264,707 Typical mortgage payment: $1,383 Median income: $76,598 43. Oklahoma City Raise needed to afford a typical mortgage payment (20% down): -$2,201 Typical home value: $242,405 Typical mortgage payment: $1,266 Median income: $74,291 Read Next: 44. Indianapolis Raise needed to afford a typical mortgage payment (20% down): -$3,052 Typical home value: $291,507 Typical mortgage payment: $1,523 Median income: $83,089 45. Buffalo, New York Raise needed to afford a typical mortgage payment (20% down): -$3,137 Typical home value: $276,444 Typical mortgage payment: $1,444 Median income: $74,456 46. Birmingham, Alabama Raise needed to afford a typical mortgage payment (20% down): -$3,933 Typical home value: $257,856 Typical mortgage payment: $1,347 Median income: $73,663 47. Cincinnati Raise needed to afford a typical mortgage payment (20% down): -$4,396 Typical home value: $301,042 Typical mortgage payment: $1,573 Median income: $82,822 48. St. Louis Raise needed to afford a typical mortgage payment (20% down): -$4,897 Typical home value: $269,589 Typical mortgage payment: $1,408 Median income: $82,664 Explore More: 49. Pittsburgh Raise needed to afford a typical mortgage payment (20% down): -$11,244 Typical home value: $226,889 Typical mortgage payment: $1,185 Median income: $76,870 50. Cleveland Raise needed to afford a typical mortgage payment (20% down): -$11,588 Typical home value: $243,743 Typical mortgage payment: $1,273 Median income: $72,083 More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard The 5 Car Brands Named the Least Reliable of 2025 Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck This article originally appeared on The Raise Needed To Afford a Home in 50 of America's Most Popular Metros
Miami Herald
12 hours ago
- Miami Herald
A New England city was just named the hottest US housing market again
Not unlike a drink cooler on a scorching summer day, the hottest metros in the U.S. real estate market are mostly trying to maintain their temperature in generally uncomfortable conditions. The residential housing market continues to show signs of softening amid an uncertain economic outlook for the remainder of 2025. Don't miss the move: Subscribe to TheStreet's free daily newsletter While qualified buyers still face 30-year mortgage rates hovering between 6-7% and elevated post-pandemic home prices, the macro dynamics are swinging away from sellers in many areas of the country. However, that's not exactly the case in the Northeast, where median list prices were up slightly in June compared to flat or declining averages in the South, West, and Midwest. June housing data revealed the inventory of homes climbed 28.9% year-over-year, now sitting north of one million active listings. While that's still 13% below pre-pandemic levels, it continues a trend dating back to late 2023. Sellers have been understandably slow to adjust to expectations after a recent seller-friendly run, but nationwide price cuts, median days on market and delistings were on the rise in June. Zillow's Market Heat Index still points to an overall neutral market, so things vary by region. Related: Nearly 95% of homebuyers in this major US city want to move away With demand holding steady as buyers seek more affordability outside of major metros, prices are still growing modestly in New England, as well as the upper Midwest. But that's not the case everywhere. "Despite this demand, only three of the nation's 50 largest metropolitan areas remain affordable for the typical household, highlighting the ongoing challenges around housing affordability," Realtor's Hannah Jones wrote. Already facing lagging construction and the largest supply gap among the four major U.S. regions, the Northeast also saw the slowest inventory growth in June (+17.6%). Those underlying factors are keeping agents especially busy in the greater New England area. For the second consecutive month, Springfield, Massachusetts - home of the Naismith Memorial Basketball Hall of Fame - was named the hottest U.S. market in June 2025 report. It was the city's fifth appearance in the top spot. More News: Moody's drops 2-word warning on housing marketFormer Warren Buffett exec makes bold real estate betDave Ramsey has blunt advice on bankruptcy for Americans buying a home now Situated 95 miles west of Boston and 27 miles north of Hartford, Connecticut, Springfield is nestled in southwestern Massachusetts and is home to nearly 155,000 people, approximately one-fourth the population of the capital city. Springfield also remains below the national average in median days on market (23 compared to 53 nationally) and median list price ($373,000 compared to $440,950 nationally in June). Amherst Town-Northampton (No. 6) and Worcester (No. 12) also represented Massachusetts high on the list, both with median list prices in the mid-500s. In total, 13 of the top 20 hottest markets were located in the Northeast, including Hartford (CT), Rochester (NY), Concord (NH), Manchester (NH), Norwich (CT), Binghamton (NY), Lancaster (PA), Erie (PA), Providence (RI), and Reading (PA). Related: Top 5 states where foreign buyers are scooping up US real estate The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
