Just when you thought San Francisco’s housing market was an impossible dream, a glimmer of hope has emerged for potential homeowners. Recent data reveals that the city is experiencing a surprising trend: increasing home affordability.

Contrary to national housing market patterns, San Francisco is one of only two major U.S. markets where more renters can afford a median-priced home compared to pre-pandemic levels. As of the second quarter, approximately 11% of renter households could purchase a median-priced home, up from 9.1% at the end of 2019.

The shift is driven by a unique combination of factors. Relatively high local incomes and stable (or even declining) home prices have contributed to this unexpected affordability boost. While monthly home purchase costs have remained relatively unchanged since 2019, other metropolitan areas have seen significant price increases.

The tech industry’s evolving landscape plays a crucial role in this transformation. AI companies are offering substantial pay packages and stock sale programs, effectively making more San Franciscans financially prepared for homeownership. However, prospective buyers should temper their excitement with realistic expectations.

Despite the improved affordability, San Francisco’s housing market remains challenging. The proportion of people who can afford homes still lags behind the national average of 12.7%. A new mortgage payment averages a staggering $10,420 per month, which is more than triple the average apartment rent of $3,498.

Moreover, saving for a down payment remains a significant hurdle. Potential buyers would need approximately 6.2 years of rent savings to accumulate a 20% down payment - a timeline that places San Francisco among the most challenging markets nationwide.

While the housing market shows signs of potential accessibility, it’s clear that homeownership in San Francisco continues to be a complex and expensive endeavor. Prospective buyers should approach the market with careful planning, realistic expectations, and a long-term financial strategy.