After a yearslong slump, there’s now a real-estate frenzy. ‘It’s just skyrocketed,’ says one house hunter.
SAN FRANCISCO—At a Pacific Heights open house in January, a line of people made their way up the steps of a two-bedroom, one-bath cooperative. There were 85 of them—steps, not people. Eight flights, no elevator.
The property received 14 offers and sold for over $1.62 million, more than $400,000 over the asking price.
While much of the U.S. housing market has been stuck in a rut, slowed by elevated mortgage rates and home prices near record highs, pockets of San Francisco are rebounding in a big way.
The AI boom, a new mayor and other changes in municipal leadership have helped to bring the city back, reversing a yearslong slump that was compounded by the ripple effects of the pandemic, crime and persistent struggles with homelessness.
Rents citywide were up 14% year over year in February, the fastest growth in the country, according to Apartment List. Mansions have been getting snapped up. An uptick in demand coupled with the city’s notorious lack of housing supply means that fierce bidding wars are breaking out again for single-family homes and condominiums in desirable neighborhoods.
