Why the San Francisco Real Estate Market Will Stay Afloat

San Francisco

The San Francisco/Bay Area real estate market, much like the New York real estate market, will forever be in demand because it is a special city. The Bay Area market will weather a downturn in the housing market better than other geographic markets for the following three reasons:

– Education: The San Francisco Bay Area boasts some of the best educational institutions in the nation. Although they do not get the respect of the east coast Ivy League schools, University of California at Berkeley and Stanford University are often considered two of the most prestigious schools in the nation, if not the world. UC Berkeley and Stanford are top-notch research institutions, showcasing top engineering schools, law schools and a business schools. The bay area also plays host to a number of California State Universities and Private Universities as well. Housing demand usually follows quality of education. People want to live in the places where they or their kids are going to be able to get the best education possible. The concentration of high quality educational institutions in the San Francisco Bay Area ensures a continued demand for housing.


– Culture: The San Francisco Bay Area has possibly the most diverse ethnic populations in the entire world. Where else are you going to find Irish people living next door to Chinese people, who are next door to Russian people, who are next door to Italian people? This diversity in culture creates an atmosphere of openness and welcoming. People want to live in the Bay Area because they know that they will be able to find people who share their same ethnic background, tradition and customs. The diversity carries a premium in terms of cost of living and housing prices, but many people are willing to pay for it. Comfort and safety in one’s own neighborhood will always be in demand.


– Location: The San Francisco Bay Area has the good fortune of being located right on the California coastline. The California coastline known for its scintillating vistas, sandy beaches and temperate climate. The Bay Area location next to the ocean keeps the temperatures warmer in the winter and cooler in the summer. Many of the people who come to live in the San Francisco Bay Area enjoy the fact that in the winter it never snows, and in the summer, it often ever gets too hot to go outside and enjoy the sun. A common mantra often heard when discussing where to buy a home is, “Location, location, location”; the Bay Area is one of the best in the United States. Not only can you live right on the beach, but you are only a few hours away from the snow (without having to deal with it in your own backyard). The choices when deciding where to live in the Bay Area are unparalleled, keeping real estate demand consistently high.


The San Francisco Bay Area has the three keys to weathering downturns in the housing market and maintaining demand for real estate: seemingly infinite quality educational opportunities, unmatched ethnic and cultural diversity, and one of the best locations in the world to live.