Condo prices in San Francisco drop as drugs and crime increase | Jobs Recent


Premium condo prices in downtown San Francisco have plummeted as drug use and crime have risen in control β€” and many techies continue to operate remotely.

Data analyzed by Compass shows the city’s Golden Gate – once hailed as the world’s hottest real estate market – has fallen rapidly.

The median sales price of a two-bedroom home, for example, has fallen 16.5% since 2021, while sales prices in the surrounding area have dropped just 7%, according to the market report.

“I knew that part of the market was weak, but I didn’t know how things had changed,” Patrick Carlisle, chief market analyst for Compass, said. “It surprised us.”

“San Francisco went from being the hottest office market in the world to the weakest,” Carlisle added.

Since December of last year, the sale price of a condo has dropped from $1.47 million to $1.23 million in downtown and South of Market.

San Francisco condo prices are falling due to crime, low rents and housing shortages.
San Francisco condo prices are falling due to crime, low rents and housing shortages.

Vadivelu Comedy Getty Images

Compass doesn’t beat around the bush in this report, citing the “economic crisis, demographics and quality of life.”

The report showed that the high-rise apartments needed to be occupied by the hundreds of thousands of workers who came into the city every morning. But with people now working from home, the demand has decreased.

Since the mass exodus of workers, the rapid decline in housing prices has been attributed to the area’s high crime rate and increase in homelessness, which Carlisle explains has eroded the “quality of life” the city once offered.

With few triggers, Tenderloin Center drug use - like lost library books - can happen easily.
A woman walks past men who passed by on the sidewalk in the Tenderloin area of ​​San Francisco.
Reuters

“High tech workers used to say, ‘if I can work anywhere, I’ll move to a place with 90 percent less expensive housing.’

The report also comes months after it was announced that San Francisco’s ultra-luxury Four Seasons Residences has sold 13 of its 146 units in the two years since opening.

Potential buyers, who included Steph and Ayesha Curry, left the high-rise, where condos are priced at around $49 million.

San Francisco occupancy is only at 39% as of the end of September – one of the lowest in the country. By comparison, New York City reported occupancy of 46% – and Los Angeles, which had 45% occupancy during the same period.

Carlisle explained that in order for the downtown market to recover, offices will need to start filling up again.

In 2020, San Francisco was in the top three cities with the highest property crime rates, according to data from the SF Chronicle. More than 4,400 incidents of property crime per 100,000 residents were reported.

In July 2022, the Chronicle asked 1,653 San Francisco residents what problem in the city needed to be fixed immediately. Crime and public safety were the second most common responses after homelessness.



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