What’s Shaping the San Francisco Real Estate Market in 2025?

Thinking of making a move in San Francisco this year? From skyline-shaping towers in Mission Bay to hidden deals in SoMa, the city’s market is shifting fast. This guide breaks down what’s new, what’s changing, and what savvy buyers and sellers need to know in 2025—neighborhood by neighborhood. Let’s get you up to speed.

Mission Bay: New Developments Changing the Skyline

Mission Bay continues to transform, with several major projects underway:

• Mission Rock: A centerpiece project delivering 1,500+ new rental homes (with 40% affordable), vibrant retail, public plazas, and eight acres of new open space right along the bayfront. Phases are opening through 2025 and beyond.

• Affordable Housing Towers: Two major towers (16 and 23 stories) are bringing 400+ new affordable apartments across two phases at Mission Bay South Block 4 East, ensuring more housing options for a cross-section of San Franciscans.

• UCSF & Campus Housing: New campus housing planned to serve students, healthcare staff, and researchers, keeping this part of the city active and growing well into the future.

Mission Bay is becoming a true live–work–play hub as these developments add walkable green spaces, housing, and links to SOMA and Dogpatch.

Dogpatch: Industrial Conversions on the Waterfront

Dogpatch’s industrial roots are its current real estate edge:

• Warehouse-to-Residential Conversions: Vacant industrial spaces along Minnesota and Tennessee streets are being converted into stylish lofts and boutique condos, blending exposed brick, high ceilings, and historical character.

• Live/Work Zoning: Several sites are slated for flexible live/work units, catering to creative professionals, tech, and small businesses seeking modern, open layouts with an urban edge.

• Limited Inventory: These historic conversions are limited and highly sought after, often selling quickly, especially those with city and water views.

Dogpatch remains a hotspot for buyers looking for that rare mix of edgy aesthetics and neighborhood comfort.

SOMA Condos: Buyer Deals & Shifting Value

The SOMA district is seeing a more buyer-friendly landscape in 2025:

• Price Drops & Motivation: Softness in the high-rise condo market means increased options for buyers—price reductions, closing credits, and longer time on market are more common, especially for units in amenity-heavy buildings.

• Hybrid Work Shift: Proximity to offices isn’t the draw it was in 2019. Some owners are offering incentives like prepaid HOAs or rate buydowns to attract new residents.

• Boutique & Resale Opportunities: Unique resale units in converted warehouses or smaller buildings offer value, especially for buyers who want authentic SF loft character rather than just another glass tower.

For buyers with flexibility, SOMA represents real negotiating power and room to find a great deal.

Outer Richmond: Why Families Are Moving In

Outer Richmond’s appeal to families is stronger than ever:

• Space & Affordability: Larger, single-family homes at lower price points than central San Francisco mean more living space, yards, and multi-car garages.

• Green Space & Recreation: Steps to iconic parks (Golden Gate Park, Sutro Heights) and Ocean Beach, with endless options for strolling, biking, or simply unwinding in nature.

• School Reputation: The area is served by respected public and private schools, a big draw for young families.

• Neighborhood Feel: Quieter streets, local businesses, and longstanding community ties offer a sense of safety and belonging that’s hard to find closer in.

For buyers prioritizing room to grow, community, and outdoor living, Outer Richmond stands out.

Thinking about your next move in SF?
Contact us for tailored insights, private showings, or just to talk possibilities in one of these evolving neighborhoods.