Buying a house in San Francisco County can be a good idea for certain buyers, but it requires significant financial preparation and consideration of long-term goals.

San Francisco County's real estate market is uniquely challenging due to its combination of high demand, limited inventory, and steep price points. The median home price in the county was approximately $1,575,000 in Q3 2023, according to the California Association of Realtors (C.A.R.), reflecting a 15% year-over-year increase. This price surge, driven by low inventory (1.3 months of supply) and strong tech-sector employment, makes homeownership accessible only to buyers with substantial savings or favorable financing. However, the county’s high property taxes (1.25% average rate) and mortgage interest rates (around 7.25% for a 30-year fixed loan in 2023) add financial strain.

On the positive side, San Francisco offers long-term appreciation potential. From 2010 to 2023, home values in the county grew by 145%, outpacing national averages. Buyers with stable incomes, particularly in tech or healthcare, may benefit from consistent rental demand, with median rents averaging $4,200/month. Additionally, Proposition 13, which caps property tax increases for existing homeowners, provides tax stability. However, first-time buyers face hurdles: a median down payment of $400,000 (25% of the median price) and stringent mortgage requirements. The county’s strict zoning laws and limited new construction further restrict supply, reinforcing price growth.

In summary, buying in San Francisco County is advisable for buyers with high disposable income, investment experience, or plans to remain in the area for 10+ years. Short-term risks include volatility and high closing costs, but long-term gains may justify the investment for financially disciplined individuals.