Are you considering buying San Francisco real estate in 2025 and beyond? Whether you’re dreaming of owning a home in the city to raise a family or exploring investment opportunities, you’ve come to the right place. As someone who has lived in San Francisco since 2001 and owns multiple properties, I’ve navigated the city’s unique housing market through various economic cycles.
In my view, 2025 is shaping up to be an excellent year to invest in San Francisco real estate, whether you’re looking for a single-family home or a condo. Below, I’ll break down eight reasons why buying property in San Francisco real estate in 2025 is a smart financial move.
Reasons Why Buying San Francisco Real Estate In 2025 Is A Good Investment
These are my reasons after living in San Francisco since 2001 and owning San Francisco real estate since 2003. I also sold San Francisco real estate in 2017, a rental property, to simplify life after my son was born. I reinvested the proceeds in stocks, bonds, and private real estate investments for 100% passive income.
1. San Francisco Is the Hub of the Tech and AI Revolution
The tech industry continues to drive demand for San Francisco real estate in 2025, with the city leading the charge in artificial intelligence innovation. Companies like OpenAI and Anthropic are expanding their presence here, and the global AI spending boom is funneling wealth into the region.
The NASDAQ surged 43% in 2023 and another 28.6% in 2024, creating massive amounts of wealth. Much of this wealth eventually flows into lifestyle upgrades, including San Francisco real estate. With AI companies rapidly scaling and preparing for IPOs, the resulting liquidity could significantly boost demand for San Francisco real estate in 2025.
Not only do you want to buy San Francisco real estate in 2025, but you also want to invest in private artificial intelligence companies. Hedge and benefit from the growth of a new technology. You can do so through an open-ended venture product by Fundrise.
2. New City Leadership Offers Renewed Optimism
The political landscape is critical for San Francisco real estate in 2025. With new leadership under Daniel Lurie, there’s hope for addressing key challenges like crime, homelessness, and urban revitalization. A more stable, attractive city environment is likely to increase interest in San Francisco real estate among both local buyers and international investors.
3. Post-Pandemic Urban Recovery
As companies like Google, Amazon, and JP Morgan call employees back to the office, urban living is experiencing a strong rebound. San Francisco’s dining, entertainment, and cultural amenities are once again attracting professionals, which bodes well for San Francisco real estate in 2025.
4. Low Housing Inventory Fuels Competition
San Francisco is geographically constrained and has strict zoning laws, ensuring limited housing supply. This dynamic keeps San Francisco real estate a hot commodity. Add to that the pent-up demand from buyers who paused during the pandemic, and you have a recipe for competitive bidding wars.
5. Pricing Remains Attractive
Despite a strong rebound, many areas of San Francisco real estate remain priced below their early 2022 peaks. This offers buyers in San Francisco real estate in 2025 an opportunity to purchase property at a relative discount before prices inevitably climb higher.
6. Tax Advantages for Homeowners
The tax benefits of owning property remain compelling, especially for high-income earners in the Bay Area. These incentives make San Francisco real estate in 2025 an even more attractive investment, particularly with the potential for policy changes that could further boost homeownership incentives.
7. Foreign Investment Is Back
San Francisco has always been a magnet for international buyers. Now, with travel restrictions lifted, global investors are returning to the U.S. market. This resurgence of foreign capital will play a significant role in boosting San Francisco real estate in 2025, as international buyers recognize the city’s status as a global hub.
8. A Proven Long-Term Investment
Over time, San Francisco real estate has consistently appreciated, making it one of the most reliable long-term investments. With tech innovation, new leadership, and a recovering urban environment, San Francisco real estate in 2025 offers a strong opportunity for buyers to capitalize on future growth.
Where to Buy San Francisco Real Estate in 2025
When it comes to San Francisco real estate in 2025 and beyond, the west side of the city stands out as a hidden gem. With significant investments in infrastructure, schools, and commercial development, neighborhoods like Golden Gate Heights, Forest Hill, and the Outer Sunset are poised for substantial growth.
Golden Gate Heights, in particular, offers breathtaking ocean views and remains undervalued compared to other global cities. If you’re looking for the best bang for your buck in San Francisco real estate in 2025, this area deserves your attention.
In every other major city in the world, single-family homes or condos with water or ocean views trade at huge premiums (50% – 200%). Here in San Francisco, you can still find relatively affordable ocean view homes. But they are increasingly getting discovered. An ocean view home with a deck or multiple decks is the most attractive type of San Francisco property.
Other incredible neighborhoods in San Francisco include Forest Hill, St. Francis Wood, and West Portal. These three neighborhoods have wonderful homes on nicer lots. In Forest Hill, you might even find the rare home with a view and a large lot. But this type of ideal home to raise a family are harder to come by.
Final Thoughts On Investing In San Francisco Real Estate
Buying San Francisco real estate in 2025 could be one of the smartest financial decisions you make. Whether you’re drawn by the city’s tech-driven economy, its cultural vibrancy, or its reputation as a long-term investment haven, the opportunities are vast.
Remember, real estate is a long game. If you can buy responsibly and hold your property for at least five years, the likelihood of achieving significant returns is high.
But at the end of the day, you should buy a home to enjoy. It's one of the best things money and stock market returns can buy. Enjoy your home and the wonderful city of San Francisco!
Diversify Into High-Quality Private Real Estate
I also suggest diversifying into private real estate—an investment that combines the income stability of bonds with greater upside potential. Consider Fundrise, a platform that allows you to 100% passively invest in residential and industrial real estate.
With over $3 billion in private real estate assets under management, Fundrise focuses on properties in the Sunbelt region, where valuations are lower, and yields tend to be higher.
I’ve personally invested over $300,000 with Fundrise, and they’ve been a trusted partner and long-time sponsor of Financial Samurai. With a $10 investment minimum, diversifying your portfolio has never been easier.
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Sam Dogen has been a San Francisco real estate investor since 2003. He went to UC Berkeley for his MBA and worked at Credit Suisse and Goldman Sachs for 13 years before retiring to become a writer. Sam ss the WSJ bestselling author of Buy This Not That and the author of his latest book, Millionaire Milestones: Simple Steps To Seven Figures.