San Francisco's demographics are changing: what homeowners and property managers need to know

San Francisco will face a fast-growing older population while it continues to prioritize community diversity. These demographic changes will likely significantly impact homeowners and property managers in the coming years. In this post, we'll dive into San Francisco and share how Doorstead can help you navigate these changes. You can read more about San Francisco’s culture and population here.?

Homeownership demographics:

• The homeownership rate in San Francisco is 36.8% (Data USA)
• The median home value in San Francisco is $1.28 million (Zillow)

Rental demographics:

• About 80% of San Francisco's housing was built before 1980 (Doorstead)
• More than 60% of renters live in rent-controlled housing, which means the rent can’t be raised much or at all (San Francisco Planning).
• The median rent for a one-bedroom apartment in San Francisco is $2,995 per month, and for a two-bedroom apartment is $4,000 per month (Zumper)
• The median household income in San Francisco as of 2020 is $119,136 (Data USA)
• 58.1% of San Franciscans are college educated, 37.6% are homeowners, and 41.7% are married. The city currently has a relatively young population with a median age of 38.2 years. (SoFi)

Additional Data:

• San Francisco has one of the highest rates of income inequality in the United States, with a Gini coefficient of 0.49. (Data USA)
• San Francisco's older population is the fastest growing, with the number of residents over the age of 60 expected to be 30% by 2030. (SFHSA)

San Francisco’s real estate remains notoriously expensive:

• Despite having the third highest number of millionaires and billionaires per capita in the United States (CNBC), San Francisco's homeownership rate remains extremely low, at only 38% (Public Policy Institute of California).?
• Zillow reports median home value in the city is $1.28 million, which may be one factor causing the city’s relatively low homeownership rate. (Zillow)
• More than 60% of renters live in housing rent-controlled by the City, which means the rent can't be raised much or at all. This provides relative affordability for low- and moderate-income households who can’t afford to move (San Francisco Planning.) Greater tenancy lengths decrease the supply of rentals and drive prices up.

Understanding the nuances of the city's rent-controlled housing stock is crucial for homeowners and property managers.? As real estate prices continue to rise, the rent gap between rent-controlled housing and non-rent-controlled housing will widen, potentially leading to increased evictions and displacement. (San Francisco Planning)

San Francisco's older population is growing rapidly:?

The fastest-growing age group in San Francisco is older adults, with nearly 30% of residents expected to be 60 or older by 2030. (San Francisco Human Services Agency). This surge will yield an increased demand for senior-friendly housing. Homeowners may want to consider accessible home renovations to adapt to the changing market. Due to the expensive real estate market in San Francisco, seniors are facing affordability challenges, which may lead to the onset of affordable senior housing communities like Casa de la Mission in the coming years or affordable community housing created by the government.

San Francisco's population stays diverse:?

San Francisco City has a rich history of cultural and ethnic diversity, with a significant percentage of its population comprising of immigrants. San Francisco's diversity can be seen in its neighborhoods, each with its own distinct character and cultural influence. For example, the Mission District is known for its Latinx community and vibrant street art, while Chinatown is a bustling enclave of Chinese culture and cuisine. The city's diversity is also reflected in its food scene, with a wide range of international cuisines represented.

San Francisco's population:

• The white population is 45%, while the Asian population follows at 34.4%, the Hispanic population at 15.4%, and the African American population at 5.2% (San Francisco Planning).
• Homeownership in San Francisco varies significantly by race, with homeownership percentages led by Asians and Pacific Islanders, with more than 54% owning their homes, followed by the white population at 39%, Latino population at 32%, and African American population at 31% (San Francisco Planning).

San Francisco's diverse demographics highlight the ongoing challenges of ensuring equity and inclusion for all residents. Despite its reputation for progressiveness, the city has struggled with housing affordability, homelessness, and displacement, particularly affecting historically marginalized communities. According to a poll by the San Francisco Foundation, San Francisco residents value diversity, citing it as a main region why the city is a great place to live. 65% of residents believe protecting the racial and cultural diversity of neighborhoods and local communities is a priority.

Housing affordability will likely continue to be a priority when voting for city issues. Addressing these challenges requires ongoing efforts to create policies and programs that prioritize the needs and well-being of all residents, regardless of their background or socioeconomic status. Recent discussions about converting empty office spaces into affordable housing exemplify these new efforts.

• Read more about San Francisco’s population in our comprehensive blog post on San Francisco city demographics.

Many factors must be considered when navigating the San Francisco market, from the challenges of high real estate costs to the fast-growing older population and increasing demand for senior-friendly housing.

As the city becomes increasingly diverse, it's important for property managers to recognize the unique challenges and needs of different racial, ethnic, income, and age groups when providing housing.

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