Just three months ago, San Francisco’s condo buyers had the advantage. Listings in the city’s financial district often sat for months, prompting sellers to cut prices and accept low offers. Buyers could take their time, tour multiple properties, and negotiate from a position of strength. That dynamic has reversed rapidly. Today, multiple offers are routine, rents are rising quickly, and the same condo could cost $200,000 more than it would have in early spring.
“We’re seeing prices rise very quickly,” says Cynthia Kellogg, co-founder and residential agent at Best Coast Collective in San Francisco. “Properties that would have sat for months are now getting multiple offers.”
After years of headlines about population decline and downtown struggles, San Francisco’s housing market is rebounding at a pace that has surprised both buyers and sellers.
In neighborhoods like Haight-Ashbury and SoMa, the change is visible. Streets are busier, open houses draw larger crowds, and inventory is moving faster. Homes that previously lingered on the market for weeks now sell in a matter of days. Rental demand is surging, with two-bedroom apartments in prime locations commanding $10,000 to $15,000 per month and waitlists for available units.
The condo market, which bore the brunt of the pandemic downturn, is experiencing renewed interest. Districts such as Dogpatch, Mission Bay, and the financial district – once quiet during the work-from-home era – are attracting both buyers and renters as office occupancy rises and new tech companies establish a presence.
Bidding wars have returned. First-time buyers who expected to have time to deliberate now find themselves in fast-moving negotiations, often needing to make decisions within 48 hours.
Two main factors are fueling this turnaround: an influx of high-earning tech workers linked to the artificial intelligence boom, and a sharp shift in public perception.
San Francisco has become a center for AI development, drawing startups and established firms that are hiring aggressively. Many of these new arrivals are young professionals with substantial incomes, ready to rent or buy in the city. “We have all of these AI startups coming to San Francisco, not just Silicon Valley,” Kellogg says. “They’re bringing in young tech workers with really high salaries.” This new wave of buyers has intensified competition, particularly for well-located condos and single-family homes.
At the same time, rising rents are changing the calculus for many residents. As rental costs climb – sometimes reaching $15,000 a month for upscale apartments – purchasing a home is becoming more attractive, especially as mortgage rates have moderated from their 2023 highs.
The city’s image is also improving. For several years, media coverage focused on crime, homelessness, and empty downtown offices. Recent high-profile events, a busier cultural calendar, and new restaurant openings have helped shift the narrative. Visitors and returning residents are seeing a more vibrant city than expected, and this renewed optimism is translating into increased buyer confidence.
Meanwhile, the remote work era is receding. Major tech employers now require in-person attendance at least part of the week, making long-distance commutes from out of state impractical. As a result, more workers are relocating to the Bay Area, filling rental units and starting home searches.
The pace of the market has accelerated sharply. Last year, buyers often had a week or more to consider a property before making an offer. Now, decisions are expected within 48 hours. “I always joke that I spend more time shopping for a dress than I did deciding to buy my house,” Kellogg says.
While closings still typically take around 45 days, the window between listing and offer has narrowed dramatically. Sellers who price their homes competitively are seeing quick results. Overpriced properties, on the other hand, are quickly bypassed as buyers focus on value and move decisively on well-presented listings.
For Buyers: The window for slow, deliberate house hunting has closed. Prices are rising, and competition is intensifying. Buyers should get pre-approved, set a clear budget, and be prepared to act quickly when the right property appears. Waiting to make an offer could mean missing out.
For Sellers: Market conditions now favor sellers, but success depends on correct pricing and preparation. Homes that are clean, staged, and priced realistically are attracting multiple offers. Overpricing, however, can still result in a listing that sits unsold.
For Renters: Those paying $10,000 or more in monthly rent may find that buying is now a better financial option, especially with improved mortgage rates. The gap between renting and owning is narrowing, making it worthwhile to compare long-term costs and potential equity gains.
About the Expert: Cynthia Kellogg is Co-Founder and Residential Agent at Best Coast Collective, operating under Engel and Völkers SF. Based in San Francisco’s Haight-Ashbury neighborhood, she specializes in first-time home buyers and has closed over $50 million in transactions. Her team focuses on long-term client relationships and education-driven service in the Bay Area market.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
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