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Bay Area Housing Market Outlook 2022 &2023

The San Francisco Bay Area is consistently ranked among the most expensive realty markets in the world. It also has one of the largest cities in the United States. The Bay Area housing market includes all nine counties (Alameda Contra Costa, Marin. Napa, San Francisco San Mateo Santa Clara Santa Clara, Solano and Sonoma), as well as 101 municipalities. Three major cities are located in the region: San Francisco, Oakland, San Jose, and Sonoma.


The trend of San Francisco’s realty market as one of California’s hottest is continuing. What are the San Francisco market forecasts for 2022-2023? Let’s take a look at the Zillow price trends over the last few years. The San Francisco County home value has increased by almost 108% since August 2012, according to the Zillow Home Value index.

The graph below shows that the San Francisco & Bay Area home prices increased steadily from 2012 to 2018. It marked the beginning of a gradual flattening of prices that lasted more than a year. The SF home value declined steadily from April 2020 to December 2020. The prices rose again after that.

The San Francisco County average home value is $1,576,842 (July2022). This indicates that 50% of the housing stock in the region is worth more than $1,576,842 and 50% is worth less (adjusting to seasonal fluctuations and only including the middle price range of homes). It indicates that 50 percent of all housing stock in the area is worth more than $1,576,842 and 50 percent are worth less (adjusting for seasonal fluctuations and only including the middle price tier of homes).

San Francisco Real Estate Appreciation Rates

San Francisco has had some of the highest property appreciations rates in the nation over the past ten years. San Francisco’s real estate market has experienced a 106.51% increase in value over the past ten years. The city also enjoys an annual home appreciation rate that is 7.52%. This puts it in the top 20% for real estate appreciation.

But, San Francisco’s appreciation rate has been lower than the rest of the country over the past year. The appreciation rate in San Francisco over the past year was 10.71%. This is lower than most American cities. Neighborhood Scout statistics show that the house appreciation rates in San Francisco was 3.37% during the most recent quarter. This equates to an annual appreciation rate of 14.19%.

This puts San Francisco amongst the country’s top-appreciating areas for the latest quarter. It may be a sign of the city’s near future real estate investment potential. The data also shows that San Francisco has a lower yearly appreciation rate than California’s other cities.


Trend in Housing Prices for the Bay Area 2022

• The San Francisco County home value rose 12.4% in the last year.
• Alameda County home prices rose by 20.9% to $1,290,434 in one year.
• Contra Costa County home values increased by 20.5% to $994,183 in one year.
• Marin County property values increased by 20.9% to $1,689,483 last year
• Napa County property values increased 15.7% to $932,911 last year.
• San Mateo County home values increased 17.5% to $1,783,114 in one year.
• Santa Clara County home values increased 22.4% to $1,712,709 in one year.
• The home values in Solano County rose 18.2% to $624,913 over a single year.
• Property values in Sonoma County rose 12.6% to $829,252 over a single year.

San Francisco County Housing Market Trends in 2022

San Francisco and San Jose are tech hubs that have attracted significant homebuyer demand in the past two years. However, San Francisco’s notoriously hot realty market saw an outward migration as a result of the pandemic. The city was experiencing a decline in population, which led to an increase in suburban demand. While suburban single-family homes are gaining in value, prices and rents in tech hubs have fallen.

• The July 2022 single-family home sales growth in SF County was negative.
• A.R. reported that closed sales fell 26.0% compared to the previous year, and 25.4% compared to the previous month.
• The median price of a single-family home was $1,700,000. This is 8.2% lower than the YTY and 10.5% less MTM.
• The median price of San Francisco’s last month was $1,900,000.
• The median price for San Francisco last year was $1,852,500.

Los Angeles and San Francisco are the most popular markets in California for temporary and permanent outward migration. Most analysts predict that condominium prices and rents will rise over the next 12 months. Single-family homes are increasingly becoming more popular in less-known areas like West Portal, Sunset, or Richmond.

The pandemic caused rents to fall in many cities, but it was particularly severe in San Francisco, which is one of the most expensive housing markets in the country. Rents went into freefall in nearly every major city along both coasts after the pandemic started in March 2020.

The East Coast cities saw their rents return to pre-pandemic levels after the vaccine rollout in January 2021. On the West Coast, however, prices have only increased incrementally. This has left the Bay Area and Seattle well below the levels they were before the pandemic. After a long slump, San Francisco rents have slowly returned to pre-pandemic levels. The median rent for a one-bedroom apartment in San Francisco is now $3,100. This is the highest level since July 2020 (source Zumper).