San Francisco Homebuyers Looking at Condos as Apartment Rents Hit Record
More San Francisco homebuyers are taking a closer look at condominiums, according to Homes.com. At the same time, apartment rents in the city hit an all-time high, data from Zumper shows.
The recent increase in condo sales shows that the strength in the housing market isn't limited to detached homes, which have received the most attention amid strong price growth, over-asking offers and bidding wars this year, Nigel Hughes, research analyst at Homes.com, told GlobeSt.com.
"The condo market is a little different from the detached home market in that condo buyers can choose to either buy or rent a quite similar product," Hughes said.
"Ever since rising interest rates pushed up mortgage costs in 2022, the buy-rent equation has been strongly in favor of renting. Over the past year, San Francisco's red-hot apartment market has driven up rents and created a shortage of available apartments. Buying a condo has become a more viable option, and I think that's driving the trends we're seeing."
San Francisco's housing market in July 2026 remained defined by tight inventory, fast-moving listings and sustained buyer demand, all of which helped push prices higher despite longstanding affordability pressures, Homes.com reported.
The city recorded 937 home sales during the month, a 12.1% increase from a year earlier. Much of that momentum came from the condo sector, where sales jumped more than 40% year-over-year, while single-family home transactions held relatively steady.
The rise in activity suggests buyers continued to enter the market even as choices narrowed and competition intensified.
San Francisco Inventory Constrained
Inventory constraints were a central feature of July's market. Active listings fell to 2,078, a 17.9% annual decline that left buyers with fewer options and contributed to faster decision-making, according to Homes.com.
Homes spent a median of 39 days on the market, three days fewer than last year and months of supply dropped to 2.4—well below the threshold for a balanced market.
With limited supply and steady demand, many buyers faced competing offers and well-priced homes frequently sold above asking, Homes.com reported. Sellers benefited from these conditions, as scarcity gave them leverage and kept interest high in desirable properties.
Prices reflected the supply-demand imbalance. The median sale price reached $1.55 million, up 2.8% from a year earlier, slightly outpacing the national median price increase of 2.6%, according to Homes.com.
On a nominal basis, San Francisco's median price rose by $42,500 year-over-year, compared with a $10,000 increase nationally.
The city remained the most expensive major housing market in the country, with its median price standing 287.5% above the national median of $400,000, Homes.com reported.
Although July's median was below the market peak of $1.77 million reached in May 2026, it still reflected substantial upward pressure driven by limited supply.
Single-family homes saw the strongest price appreciation. The segment's median price climbed by $211,944 over the past year to just over $2 million.
Townhome prices increased by 2% and condo prices rose 4.3%, reinforcing the broader trend of rising values across various property types. San Francisco ranked 12th among the top 40 U.S. markets for annual median price growth, underscoring its continued resilience even as affordability challenges persisted.
Overall, July's data shows a market where buyers remain active despite high costs and shrinking inventory. Sellers benefit from scarcity and home values continue to rise in one of the nation's most competitive housing environments.
San Francisco's One-Bedroom Apartments Hit All-Time High
For the apartment sector, Zumper's national rent report found that San Francisco's one-bedroom rent just hit an all-time high of $4,300, up 25.7% year-over-year.
It is now just $200 behind New York City's $4,500, the narrowest gap all year. San Francisco (SF) held the national top spot for years before NYC overtook it in August 2021; five years later, SF is closing in on it again.
Zumper's rent data shows New York easing slightly this month in a market that remains historically tight by other measures.
The bigger driver may be a comeback effect. SF's rent collapsed early in the pandemic and only recently clawed back above its old peak.
This year's AI-driven demand is landing on a lower year-ago base, which largely justifies the dramatic rent growth.
New York's rent never fell nearly as far and has stayed close to record territory since 2022; one-bedroom rent hit an all-time high as recently as May 2026, leaving less room for a comparable year-over-year jump even though prices remain just as high.
That's part of why SF is closing the gap on price rather than New York opening one.
But SF has the upper hand on NYC in one area — two-bedroom apartments, with the lead widening to $710.
Source: GlobeSt/ALM