San Francisco is in trouble. Crime and homelessness are surging. Home prices and rents are collapsing. The city is going through a simultaneous social crisis and Housing Crash. Is there any hope for the future of San Francisco as a city and Real Estate Market?
Mayor London Breed and District Attorney Chesa Boudin say crime and homelessness are stable and that things aren’t getting worse in San Francisco. But from my weekend in the city things appear to be very bad. Retailers like Target are cutting back hours due to high theft. Others like Walgreens are shutting stores entirely. Car break ins are running rampant.
Home Prices across urban San Francisco are tanking, by nearly 10% YoY in certain neighborhoods. 94111, which covers the Embarcadero and the Financial District, has experienced a 7% decline in prices and 15% decline in rents. This is the same neighborhood where my friends had their car broken into.
But perhaps the worst neighborhood across the city is the Tenderloin. This area is where most of San Francisco’s homelessness is concentrated and is also very high crime. Home prices in this neighborhood are down by 5% while rents are down by 17% since June 2020.
The future of urban San Francisco looks grim, especially under current leadership. The local Housing Market still likely has further to fall as most offices remain closed and only 20% of the city is back to work. The lone bright spot is the Bay Area more broadly, where home prices have increased by 15-20% in areas such as Oakland, San Jose, Silicon Valley, and Marin County.
But the issues that urban San Francisco is experiencing from a crime, homeless, and real estate perspective could spill over into neighboring areas down the line. That’s why I wouldn’t count on continued real estate appreciation across the suburban Bay Area.
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0:00 San Francisco has Problems
2:05 BIG % Declines in Home Prices
3:32 Financial District is EMPTY
4:39 20% of Office Workers Back: NOT ENOUGH
7:02 Home Price Collapse in the Tenderloin
9:29 WHY is this Happening in SF?
11:13 Target, Walgreens & CVS: Shutting Down!
13:04 Wait…Crime is DOWN in San Francisco?
14:36 San Francisco: Bad for a Long-Time
16:00 Price Appreciation in Suburban Areas
17:27 Housing Crash 2.0 in the Bay Area?
#SanFrancisco #HousingCrash #BayArea