S
an Francisco's housing market is experiencing a significant downturn. Housing prices have plummeted to pre-pandemic levels due to widespread layoffs in the tech sector. According to SFGATE, condo prices have dropped 14.7% from May 2022 and now average $986,000, a level not seen since 2015.

    Single-family homes are also experiencing a decline, with prices down 15.4% from their peak in 2022, averaging $1.39 million. Condo prices doubled between 2012 and 2022 but have declined by 30% over the past two years. The Millennium Tower, infamous for its lean, saw a 44% price decrease per unit.

    The decline in housing costs coincides with tech layoffs, which have resulted in a 20% decrease in the "Information" industry's workforce since its peak and a 7% decrease in employees in the "Professional, Scientific, and Technical Services" industry. There were over 10,200 permanent layoffs filed in San Francisco during 2023.

    Despite this, the National Association of Realtors predicts that home prices will increase by 2% in 2025, with a median cost of $410,700. Lawrence Yun, NAR's chief economist, believes that "the worst of the affordability challenges are over" as more inventory and stable mortgage rates become available.