Condominium Values in San Francisco Are Dropping Sharply Amid Rising Crime Rates
Luxury apartment costs in downtown San Francisco’s prime locales are nosediving, in sync with escalating issues related to substance abuse and criminal activities. This decline comes as an increasing number of tech professionals opt for remote working setups.
Research conducted by local real estate brokerage firms reveals a significant fall from grace for the city, which was once a global magnet for real estate. Specifically, the average selling price for a two-bedroom unit has decreased by 16.5% since last year, a steeper drop compared to the 7% in adjacent localities.
Leading market analysts and real estate experts expressed their utter surprise at the gravity of the shift expressing deep concern saying it was amazing how fast things got worse.
Moreover, these experts indicated that San Francisco’s reputation has taken a hit, evolving from an unrivaled office space destination to one of the least desirable. From December of the previous year, the middle sale price for condos in key districts has sunk from $1.47 million to $1.23 million.
These data pull no punches, pointing to a trifecta of economic, demographic, and living standard challenges as the culprits. In particular, the city’s skyscraper residences were initially built to house a large influx of daily commuters. However, with the advent of work-from-home arrangements, demand for such accommodations has waned significantly.
As employees increasingly relocated, the swift downturn in real estate values can now be linked to rising criminal activities and a burgeoning transient population. These trends has eroded the unique atmosphere San Francisco once promised.
Tech employees, who have the flexibility to work from anywhere, are choosing locations where living costs are substantially reduced. Adding insult to injury, a report revealed a few months ago that only 13 of the 146 units at San Francisco’s posh Four Seasons Residences have found buyers since its inauguration two years ago. This includes high-profile persona from celebrities like Steph and Ayesha Curry.
As of the end of September 2023, the city’s occupancy rate stood at a mere 39%, one of the lowest across the U.S., lagging behind cities like New York and Los Angeles.
To regain its previous glory, experts suggest that offices in the city will need to see increased foot traffic side by side with a reduction in crime rate in central areas. Previously, San Francisco was among the cities with the highest rates of property-related offenses, with a reported 4,400 instances per 100,000 residents.
A recent survey involving 1,653 local residents revealed that next to homelessness, crime and public safety remain at the forefront of concerns that need urgent addressing.
Related Issue: Property Crime Trends in San Francisco
Property crime in San Francisco has been a significant issue over the past five years. According to the City Performance Scorecards by the City of San Francisco, the city submits crime data to the federal Uniform Crime Reporting (UCR) Program every month. The UCR provides a comprehensive picture of crime in San Francisco, including property crime.
In 2020, San Francisco was in the top three cities for high levels of property crime, with more than 4,400 incidents of property crime per 100,000 residents. This rate, while high, was lower than prior to the pandemic. In 2019, the city ranked number one for property crimes among major cities, with agencies reporting 5,500 incidents of burglary, larceny-theft, motor vehicle theft, or arson per 100,000 San Franciscans.
The property crime rate in San Francisco has seen fluctuations over the past five years. According to data from City-Data.com, the property crime rate in 2020 was 414.2, compared to 401.9 in 2019, 413.9 in 2018, 447.3 in 2017, and 420.1 in 2016. These rates are significantly higher than the U.S. average for the same years.