San Francisco’s real estate market is experiencing notable shifts, with rising home prices, increasing homeowners association (HOA) fees, and new affordable housing initiatives shaping the city’s housing landscape.
Market Trends: Rising Prices Amid Low Inventory
Recent data indicates a significant surge in home prices across San Francisco. In February 2026, the median home price rose by 23.5% to $1.976 million compared to the previous year. This increase is largely attributed to a sharp decline in inventory, with active listings dropping by 34.7% during the same period. Despite the reduced supply, demand remains robust, leading to faster sales and homes often selling above the asking price.
HOA Fees on the Rise
Homeowners in the San Francisco metro area are facing higher HOA fees. In 2025, the median monthly HOA fee reached $502, up from $360 in 2019. This increase adds to the financial burden for homeowners, especially in a market already characterized by high housing costs.
Affordable Housing Developments
To address the housing affordability crisis, several new developments are underway:
Mission Bay Block 4E
Located in the Mission Bay neighborhood, this project will offer 398 affordable homes for families earning between 35% and 95% of the area’s median income. Phase I, comprising 165 apartments, is set to begin construction in early 2027, with leasing expected in 2029.
La Maravilla
Situated at 2970 16th Street in the Mission District, La Maravilla will provide 136 supportive housing units for adults exiting homelessness. The nine-story development will include onsite services and a behavioral health center, aiming to foster stability and community connection.
Caltrain Railyard Redevelopment
A major redevelopment proposal aims to transform the Caltrain station and rail yard at 4th and King streets into a mixed-use development. The plan envisions a 15- to 20-year build-out, contingent on relocating rail storage off-site and completing The Portal—an extension of Caltrain service to the Salesforce Transit Center. If approved, the development could significantly reshape the Mission Bay and SoMa neighborhoods.
These developments reflect ongoing efforts to provide more affordable housing options and reshape San Francisco’s urban landscape.