SAN FRANCISCO (KPIX 5) — A new study says San Francisco’s median home price has risen to a sky-high record: $1.6 million.
Housing prices are up almost 24 percent compared to this time last year.
Those high prices are dashing many people’s dreams of home ownership.
If you’ve been in San Francisco any length of time, you’ve likely seen once working class neighborhoods change before your eyes.
Today, you’d be hard pressed to find a house in the Outer Richmond District for under the median price of $1.6 million.
And that’s killing the dream of homeownership for may locals.
It’s a two-bedroom, two-bathroom house built in 1947. So what’s the asking price?
And Dan Bonnet of Paragon Real Estate says $1.6 million is the new median price for a house in San Francisco.
And while a 1,400-square-foot house in the Castro District that is priced right at the median, he thinks it will likely sell for $2 million or more.
“We know we’re going to attract multiple offers, and it’s unfortunately the way things are done in San Francisco,” Bonnet said.
And that’s frustrating for San Francisco natives like Cloud, a 30-something dog trainer who can’t afford to buy in the city where she was raised.
What do you think is causing the increase in housing prices?
“Highly overpaid. I guess mostly techies. The people who get free lunches, free massages, free drinks and think it’s just normal. That’s driving it out of proportion,” Cloud said.
Bonnet believes the problem is inventory, due in part to locals who can’t afford to move.
Other realtors point to more tech companies setting up satellite offices in the city, combined with high paid tech workers who reverse commute to the Peninsula.
But whether or not they work in tech, another new report out this week found the people moving into the Bay Area are generally younger, more educated and make a lot more money than the people their pushing out. On average, $18,700 more.
Still, San Francisco Mayor Mark Farrell doesn’t blame tech companies for skyrocketing prices.
He blames the people opposed to building more housing.
“It’s very frustrating when you have people not wanting the city of San Francisco to build more housing. We have to build aggressively here in the city of San Francisco,” Farrell said.
Cloud said, “I think he’s not paying attention. Its not that we need more housing, it that we need fewer people.”
Realtors point out that building new housing stock would likely be in the form of condos, which haven’t see as steep of a price hike as these single family homes.
The median condo price is still under $1.2 million and only increased 4.6 percent since last year.
But keep in mind, all of these prices are generally higher in the second quarter of the year and experts expect these median prices to rise.