Housing & Residential Real Estate

In 2002, Money Magazine ranked San Francisco as the No. 2 best place to live in the country. The 47 square miles that comprise San Francisco are home to some of the oldest and most beautiful residential property in California. Ranging a span of more than 150 years, San Francisco showcases a variety of historical housing styles, ranging from early to late Victorians, Mediterranean and California-style view homes; high-rise condominiums; and post-World War II developments.

Between 1850 and 1950, the city was built outward from the downtown area, growing from north to south and from east to west. In each era, the current architectural style prevailed.

The majority of residential properties in San Francisco are multiunit; 65 percent of the city's residents are renters. According to McGuire Real Estate, monthly rents in the city range from an average of approximately $900 to $1,100 for studio apartments, $1,700 to $2,750 for one or two bedrooms, and $2,300 to $4,000 for two- or three- bedroom apartments. Houses command higher rents, averaging from $6,500 per month for one or two bedrooms, and from $7,000 to $10,000 for three-bedroom houses in the better areas of the city. Although still high compared to national prices, rental prices have corrected in the past year. For example, houses that were renting fro $2,000 per month are now in the $1,100 to $1,200 range.

Despite a national economic slow down, residential property in San Francisco continues to be a positive investment. In the third quarter of 2003, the average sales price of a San Francisco home rose 2.8 percent to $711,000, up from 2002 average of $691,800, in the same period (Source: SFARMLS). McGuire attributes the continued growth to sustained buyer demand and low interest rates that are exceptionally attractive for first-time buyers