While much of the national real estate conversation in 2025 continues to focus on cooling markets, rising inventory, and hesitant buyers, San Francisco is charting a different course—one marked by resilience, renewed demand, and upward momentum.

In contrast to broader U.S. trends, San Francisco home prices surged nearly 10% year-over-year, with the median sale price reaching $1.55 million. Homes are selling faster, often with multiple offers, and the city’s competitive edge remains sharp – properties are going pending in just 19 days on average, with many selling above asking price.

What’s driving this divergence? A powerful mix of economic revitalization, demographic shifts, and policy momentum. San Francisco has re-emerged as a global hub for generative AI, attracting thousands of new residents and tech professionals. This influx is fueling housing demand and reshaping the city’s development priorities, including bold rezoning initiatives aimed at unlocking 36,000 new housing units.

Even amid regional uncertainty, San Francisco’s market is holding strong. In July, both single-family and condo prices hit their highest levels since the pandemic boom, and rental rates followed suit. While other metros are seeing price reductions and longer days on market, San Francisco is proving to be the exception, not the rule.