San Francisco House Prices Drop Back to 2019, Condo Prices to 2015, as Tech Jobs in the City & Silicon Valley Evaporate after Drunken Hiring Binge

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2024-12-29 06:00:04

The big decline in tech employment in San Francisco and the northern part of Silicon Valley that we’ll get to in a moment has put its stamp on home prices in the city of San Francisco.

Single-family house prices: -15.4% from the peak. In the city of San Francisco, prices of mid-tier single-family houses in November have dropped by 15.4% from the peak in May 2022, to $1.39 million, seasonally adjusted, and are back where they’d first been in 2019. October and November were down a tad from the prior three months.

“Mid-tier” to reduce the effects of shifts in the mix; “seasonally adjusted” to reduce the effects of seasonality; and “smoothed” (three-month average) to reduce monthly zigzags, as per data from the Zillow Home Value Index (ZHVI).

Slowly undoing the “Housing Crisis.” In the decade from 2012 to May 2022, ZHVI for single-family houses had spiked by 160%, triggering what was locally called the “Housing Crisis,” where middleclass employees with good incomes could no longer afford to live in the City.