B
enzinga and Yahoo Finance LLC may receive commissions from the links below. A recent Redfin analysis indicates that San Francisco housing costs have reverted to what the firm defines as “normal,” yet this normalcy does not equate to affordability. Redfin’s benchmark for normal is the U.S. market in July 2018, when the average San Francisco home was valued at roughly $1.3 million according to Zillow’s home‑value index. Although the report omits current price figures, the historical data underscore the city’s steep market.

    The city’s real‑estate scene has long been inflated by Big Tech wealth, propelling prices into the stratosphere for over a decade. Even with recent price moderation, the median mortgage‑to‑income ratio in San Francisco remains high—about 74% in July 2018, falling to 67% today—well above the 30% national benchmark. Coupled with today’s higher interest rates, most middle‑class buyers find homeownership unattainable.

    Redfin chose July 2018 as a reference point because interest rates hovered near 4%, price growth was manageable, and the market balanced between buyers and sellers. The nationwide median mortgage‑to‑income ratio of 30% is widely accepted as a measure of affordability, but San Francisco’s ratio still lags far behind.

    Meanwhile, Home’s Private Credit Fund has historically delivered an 8.1% annualized dividend yield, granting investors access to short‑term residential‑real‑estate‑backed loans with a $100 minimum. Despite the recent slowdown, a surge in Big Tech AI profits could reignite price spikes, keeping the city’s housing market out of reach for many.