Here’s How Luxury Condo Prices Dropped in the Heart of Downtown San Francisco drug abuse and crime Control has ended – and as many techies continue to work remotely.
Data analyzed by Compass shows that the Golden Gate city – once pegged as the hottest real estate market globally – has fallen sharply since then.
For example, the median sale price of a two-bedroom apartment has fallen 16.5% since 2021, while sale prices in surrounding areas have dropped only 7%, according to market reports.
“I knew the market segment had weakened, but I didn’t know the extent to which things had changed,” said Patrick Carlisle, chief market analyst at Compass. “It was a little shocking.”
“San Francisco has gone from the hottest office market in the world to the ugliest,” Carlisle said.
Since December of last year, condo median sale prices fell from $1.47 million to $1.23 million in the Greater Downtown and South of Market districts.
Compass doesn’t beat around the bush, citing a “triple whammy of economic, demographic and quality-of-life issues” in this report.
The report highlights that the purpose of the skyscrapers is to accommodate the hundreds of thousands of workers who flood the city every morning. But now people are working from home, its demand has reduced.
Since the mass exodus of workers, Sharp fall in housing prices This has since been attributed to the area’s high crime rate and growing homeless population, which Carlisle points out have affected the “quality of life” that the city once offered.
“High tech workers were the ones most likely to say, ‘Well if I could work from anywhere, I’d move to someplace where housing costs 90 percent less.'”
The report also comes months after San Francisco’s ultra-luxurious Four Seasons Residences sold just 13 of its 146 units in the two years since its opening.
Potential buyers, including Steph and Ayesha Curry, have rejected the high-rise, where condos are priced at up to $49 million.
san francisco occupancy is at just 39% as of the end of September – one of the lowest in the country. By comparison, New York City reported 46% occupancy – and Los Angeles, which had 45% occupancy around the same time.
Carlisle explained that for the downtown condo market to make any sort of comeback, offices have to start refilling.
In 2020, San Francisco was among the top three cities with the most property crime, according to data from SF Chronicle, Over 4,400 incidents of property crime were recorded per 100,000 residents.
In July 2022, the Chronicle asked 1,653 San Francisco residents what problems the city urgently needed to address. Crime and public safety were the second most common answers after homelessness.