S
an Francisco's core is showing signs of revitalization after years of decline. In one central ZIP code, median home list prices jumped 51% in May compared to the same time last year, according to Realtor.com. This surge in buyer interest comes as more workers return to their offices and newly elected Mayor Daniel Lurie pushes a cleanup campaign aimed at reversing the city's declining reputation.

    Lurie has focused on curbing open-air drug markets, reducing homelessness, and boosting sanitation since taking office in January. He has proposed a budget centered on core services like public safety and launched enforcement efforts to curb open drug use and encampments. The mayor's office touts early progress, citing a nearly 30% drop in crime and the lowest number of street encampments since 2019.

    The downtown real estate market is responding to these changes: median home list prices have increased significantly in key neighborhoods like Nob Hill and Union Square. While some critics have protested Lurie's planned cuts to city staffing, he points to a nearly 30% drop in crime and the lowest number of street encampments since 2019.

    The housing recovery remains uneven, with most ZIP codes across the city still lagging behind pre-pandemic pricing levels. However, the uptick suggests renewed buyer interest, particularly among AI companies clustering in the Bay Area. Realtor.com's Hannah Jones notes that demand for homes in central San Francisco fell as office workers went remote, but prices are now on the rise again.

    While high interest rates and affordability challenges persist, some see the beginnings of a fragile rebound in downtown San Francisco. Steven Huang, founder of Ascend Real Estate, says progress is visible, with more foot traffic already seen in areas like Union Square. However, whether this momentum can be sustained remains to be seen.