Purchasing a home in San Francisco can be a good long-term investment if you plan to stay in the U.S. for many years. But given steep home prices, limited supply, and rising mortgage rates, buying is not always cheaper than renting in the near term, especially in a city as expensive as San Francisco. From choosing the right neighborhood to securing financing, this guide will help you understand each step when buying property in San Francisco.
The San Francisco real estate market at a glance
Brace yourself for a sharp shock when you start looking at property listings in San Francisco. Unfortunately, the San Francisco housing market is among the most expensive in the US. This is caused by a few factors, like strong demand, limited available land for expansion, strict zoning laws, and, of course, high-income job growth in tech and related sectors, which has pushed lower-income people out of the market.
Currently, the average home value in San Francisco is approximately $1,270,000.
The median listing price is about $1,100,000, with a listing price per square foot of $921.
In the broader Bay Area, median home prices are even higher; for the wider San Francisco County, the median sale price sits around $1.4 million.
In some neighborhoods, prices have risen sharply year-over-year, especially in sought-after districts close to downtown and major parks.
Property prices in San Francisco
Home values vary dramatically across the city, but prices skew high across the whole area. Expect to pay around $1.6 million to $2.2 million in Pacific Heights, Presidio Heights, or Noe Valley. You are looking at $1.1 million–$1.4 million in Inner Sunset, Bernal Heights, or Potrero Hill, and around $800,000–$1 million in Outer Mission, Excelsior, or Bayview. Condos downtown and in SoMa average between $900,000 and $1.2 million.
How to go about buying a house in San Francisco
If you're planning a move to San Francisco and weighing up whether to rent or buy, be aware that renting a house in this city is also costly. But for many people, renting is the only realistic financial choice unless you plan to stay long-term and can comfortably afford a very large down payment. However, if you are considering buying, here are some of the key things to be aware of.
Legal rights and restrictions
Foreign nationals can purchase property in California, including San Francisco, with no citizenship or residency requirement. There are no restrictions on property type—you may buy condos, single-family homes, or townhouses.
Financing and mortgages
Securing financing as a foreign buyer is more complex than for US citizens or residents.
- Lenders often require down payments of 30–50 %, higher interest rates, and more documentation. Obviously, once you factor in SF house prices, this is a big challenge for many.
- Some California lenders offer foreign-national mortgage programs for buyers without US credit histories.
- Proof of international income or assets and valid identification are typically required.
- Visa status isn't always necessary, but it can make the process easier.
Documentation and identification
To proceed with the purchase, you'll need some basic stuff:
- Proof of funds and income statements.
- ITIN or Social Security Number (for tax and mortgage purposes).
- Passport or government ID.
- Certified translations are required for financial documents from abroad.
Taxes and ongoing costs
Property owners pay annual property taxes (around 1.2 % of home value in San Francisco), plus insurance and maintenance. Foreign owners may also face withholding taxes on resale profits, so getting some international tax advice is recommended.
The best practices when buying a home in San Francisco
Work with a local realtor
A licensed realtor, especially one who is experienced with international clients, can help you find your dream home as well as negotiate with the seller and navigate the escrow process. After researching neighborhoods and finalizing your budget, hiring a realtor is the next big step. They can also connect you with lenders, inspectors, and title agents familiar with foreign-buyer transactions.
Make sure you find a realtor whom you trust. You can meet with realtors and see if you connect with them before committing to working with them. Realtors can be found through online real estate tools and by asking around online. A great way of finding a realtor is to attend open houses that are similar to what you want to buy and talk to the listing agents there.
Escrow and title
In California, escrow and title companies manage most of the legal and financial steps in a home purchase. The escrow company acts as a neutral third party, holding funds and documents until both buyer and seller have met all their obligations. Once everything checks out, escrow releases the funds to the seller and records the sale with the county.
The title company researches the property's ownership history to ensure there are no unpaid taxes, liens, or ownership disputes, and issues title insurance to protect the buyer (and lender) against any future claims on the property.
In San Francisco, these two entities are typically brought into the process by your real estate agent or sometimes by the seller's agent. They work closely together to make sure every sale is secure and legally sound
Understand the total costs
Expect closing costs of 2–5% of the purchase price, plus property tax, escrow, insurance, and inspection fees. Always request a full breakdown before committing. You don't want a nasty surprise!
Timing the market
The San Francisco property market fluctuates with industry trends and interest-rate shifts. Evaluate your long-term plans and compare the cost of buying vs. renting in your target neighborhood before taking the plunge. Make sure you have a clear budget and get advice from locals.
Useful links:
San Francisco Chronicle Real Estate
San Francisco Assessor-Recorder's Office
We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
