Value of S.F. homes grew by $131 billion in 2015January 19, 2016
By Anna Marie Erwert on January 1, 2016
This Noe Valley fixer went for $1M over asking in 2015. Photo: MLS
San Francisco real estate doesn’t really need a happy new year: at least for its sellers and landlords, 2015 was epic, with home values soaring, overbidding insanity, rents rising to new highs (the highest in the nation), and landmark sales topping $30M. The gallery above reads like a storybook of real estate frenzy, one that anyone following the local market already knows by heart; still though, this Zillow study, which calculates San Francisco property and rent value inflation for the year, is striking.
The total value of all homes in the San Francisco metro grew in 2015 by more than $130 billion, according to Zillow’s year-end analysis. To quote,
San Francisco, CA metro highlights:
- Homes in the San Francisco, CA metro gained $131.2 billion in total value this year, a 12.2% increase.
- Overall, the cumulative value of all homes in the San Francisco, CA metro is $1.2 trillion.
- At the same time, renters paid $16.7 billion in rent in 2015.
- In November, rents rose 13.8% to $3,325
What can we attribute to such mind blowing figures? As always, scarce supply for clamoring demand. But also factoring in this year: the rising popularity of luxury condos both to own and rent in places like the Millennium Tower ($8M) and Miller Place ($9.5M) and One Rincon Hill where a unit rents for $14K a month.
Meanwhile, rents went up all over the city. Studios in the Financial District asked rents over $4,000 a month. A SoMa 1 BR loft commanded $3895 a month. Even the formerly “affordable” efficiency units, devoid of kitchens, closets, and sometimes even bathrooms, rented for close to $1,600 a month.
San Francisco is not the only city with spikes in both home and rent prices. Zillow found that nationally, the cumulative value of U.S. homes rose $1.1 trillion in 2015 to $28.5 trillion, and renters paid a record $535 billion in rent.
So readers, on this, the first day of the new year, make your predictions: Will 2016 be an even bigger one for San Francisco real estate? How much higher can it go?
Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Annaon Twitter: @AnnaMarieErwert