Is it cheaper to rent or buy in San Francisco?

It's generally cheaper to rent in San Francisco right now if you are looking at the average cost of buying versus renting a home. The median listed home price is $996,500, and homes are selling for about $649 per square foot. This is quite high compared to typical rental costs in the area. Most homes are also staying on the market for about 37 days, which is less time than last year. The number of homes for sale is 5,944, which is fewer than last year. This lower supply can keep prices from coming down quickly. However, the median listing price has stayed about the same over the past year. Also, 13.1% of homes have recently dropped their prices. This means some sellers are willing to negotiate. If you are thinking about moving to San Francisco, renting first could give you more flexibility to understand the local market before committing to a purchase.

It is generally more expensive to buy a home than to rent in San Francisco right now. The typical home lists for just under $1 million, not including any other costs involved with buying. Even with homes listing for a median price of $998,250, they are still selling for $664 per square foot. This price per square foot is actually down 3.5% from last year, but it's still a high cost for individual spaces within a home. Fewer homes are on the market compared to last year. The number of active listings is down 16.5% and new listings are down 8.1% from last year. This means there isn't as much to choose from, which can make prices stay high. Most homes are selling relatively quickly, typically in around 32 days, and this is 8.6% faster than last year. Nearly half of the homes on the market are under contract, which suggests that many homes are finding buyers. If you're considering buying, be aware of the high upfront costs and the limited number of homes available, which can make the process more competitive.