Austin Klar breaks down why San Francisco condo ownership is getting pricier. Average price per square foot jumped over 5% year-over-year, and HOA fees are climbing 4-5% annually due to rising maintenance, insurance, and repair costs. Buyers need to account for these hidden expenses before committing.
Owning a condo in San Francisco is getting further and further out of reach, and I'm not just talking about prices, I'm talking about the actual cost of ownership. On the pricing front, after several years of declines, so far this year compared to the same period last year, average price per foot up over 5%, median sale price up over 10%, average sale price up over 7%. And aside from those significant price increases, the actual ownership costs are rising as well. According to the San Francisco Business Times, the average HOA fee is rising 4 to 5% every single year, and in some instances even more. And that's because the cost of building maintenance, building insurance, and landscaping, utilities, repairs, all that stuff is increasing. These cost increases impact single-family owners too, but it's a little bit different than when you're a condo owner with an HOA telling you how much you need to spend. So if you're thinking about buying a condo in the city, make sure you have your eyes wide open to all the potential costs and pitfalls. It can still be a really good investment, but it depends on a lot of factors. Share this with someone thinking of buying a condo in the city and follow me for more San Francisco real estate.
