San Francisco Home Prices Up 6% Year-on-Year as Tech Sector Roars Back

San Francisco’s median home price climbed to $1.3 million in the second quarter of 2026, a six percent increase from the same period last year, according to new figures released Thursday by the San Francisco Association of Realtors. The jump puts the city back near its pre-pandemic price trajectory, fueled in part by a new wave of tech job offers and strong demand for centrally located condominiums.

Pent-Up Demand Follows Sluggish 2025

This marks a sharp turnaround from last year, when uncertainty about remote work, rising interest rates, and ongoing urban woes depressed the city’s residential market. Now, recruiters at Market Street’s marquee tech firms are chasing talent again, and newer start-ups clustered around Dogpatch and the Mission are offering signing bonuses that help buyers compete for limited listings.

"The last quarter, we’ve seen lines out the door for open houses at One Rincon Hill and along Divisadero," said Ana Lin, a downtown brokerage manager. OpenHouseSF, an agency tracking attendance, recorded a 35% bump in foot traffic for units priced $1 million to $2 million, particularly around the Valencia corridor and on the edges of Potrero Hill.

Price momentum was strongest in Pacific Heights and the Marina, where median home values crossed $2.8 million in Q2, up 9% year-on-year. The Mission, still a microcosm of both rising local wealth and rent-burdened families, posted 7% annual appreciation, driven by lofts and smaller two-bedroom condos near 20th and Bryant streets.

Inventory Tight, Data Shows Higher Condo Turnover

Figures compiled by Compass Research found just 2,185 residential units listed for sale in San Francisco at the close of June—17% fewer than a year earlier. Scarcity is propping up prices, but the picture is nuanced: single-family homes posted slower appreciation (4%) than condominiums, which surged 7.5% since last June as young buyers and tech employees hunted for manageable HOA fees and fast commutes to SoMa’s headquarters.

Cornerstone projects like Trinity Place in SoMa and Mission Bay’s Arden have rapidly sold out of mid-tier inventory: "We had four units go into contract in a single weekend in May," said a leasing manager at Arden. Market-wide, 38% of new condo listings in Q2 were off market within 30 days—up from 24% last year, data from CoreLogic shows.

Rents followed suit, especially in central locations. San Francisco Rent Board reported average two-bedroom market rents reaching $4,250 in Hayes Valley and $5,000 in North Beach. The ripple effect is nudging would-be tenants to consider purchasing, even as mortgage rates hit 6.2% in early June according to Freddie Mac’s Bay Area weekly averages.

Looking Ahead: Sellers' Market, but Storm Clouds Linger

With less than two months of supply in many neighborhoods, local brokers advise sellers that competition is fierce—and that pricing above last year’s peak is realistic for move-in-ready properties. Buyers chasing homes in the $900,000 to $1.5 million range should come pre-approved and, in some cases, consider waiving contingencies, said brokerage staff contacted by The Daily San Francisco.

Still, some agents warn that ongoing tech sector layoffs in other regions, persistent homelessness concerns along the Embarcadero, and global instability could cool demand later this year. Prospective buyers are urged to follow market data closely and move quickly on rare well-priced listings. The next quarter will reveal whether this rebound has deeper roots or is simply a post-pandemic catch-up.