These San Francisco Neighborhoods Will Explode in 2026 (Get In Early)

The media told you San Francisco was dead, reigniting the doom loop narrative as crime, drug use, homelessness, and an exodus from the city led to an economic downturn for San Francisco. But just as it has multiple times during its life, San Francisco is once again proving the doomers wrong. Venture capital investment, return to office, the AI boom, and improving city conditions are reigniting San Francisco's economy and ushering it into its next growth phase. And there are certain pockets of San Francisco that I think are uniquely positioned to benefit the most from those shifts. And I'm gonna give you my predictions of what some of those neighborhoods are in this video. This is Austin Klar, your lawyer-turned-real estate agent in San Francisco, and in this video I'm breaking down what neighborhoods are going to experience the next boom because of all the positive things happening in San Francisco right now. This is a part 2 of a video I made about a year ago where I broke down early predictions for booming neighborhoods, highlighting areas like West Portal, Yerba Buena, Jackson Square, and Dogpatch, but there are several others that I think are uniquely poised for rapid growth, we're already seeing signs of it in these areas, and I'm gonna break 'em all down for you right here. So whether you're a tech worker relocating for work or you're an investor looking to dig into San Francisco real estate, you've got a head start on your research. Before I get into the specific neighborhoods, I wanna give you a breakdown of what's happening in the broader San Francisco economy, which is gonna explain why we're already seeing and are gonna continue seeing growth in these neighborhoods. Leading up to the pandemic, certain laws were passed and policies were enforced That fostered an environment where property crime and drug use could flourish, in particular in certain pockets of the city near downtown Civic Center, the western part of SoMa, Market Street, and the Mission. At the same time, the pandemic caused a surge in remote work, and for a sustained period, residents no longer needed to live in the city and be close to their offices. So demand for expensive condos near the main hubs of the city fell substantially. And as foot traffic in the financial and commercial hubs of the San Francisco fell, a lot of the businesses that were being served by those communities, both by residents and commuters and tourists, began to shutter. That caused commercial vacancies to skyrocket— office vacancies, retail vacancies, restaurant vacancies— and it caused a spike in homelessness. But luckily for us, the city has worked tirelessly over the past couple of years to reverse those trends so that we can see growth and renewed investment in our city again. Crime rates have fallen across categories, now at multi-decade lows. Unsheltered homelessness has fallen. Tourism is up. Tourist spending is up. Conventions are up. San Francisco's population is growing again. Employers are mandating return to office. Developers are reinvesting in downtown to turn old and underutilized spaces into world-class properties. Billions of dollars are being invested in new mixed-use communities in previously underutilized parts of the city. San Francisco received the largest share of VC investment in the country, and most notably, there's been an absolutely insane surge of AI activity in San Francisco, and these new AI companies are expanding rapidly. And is snatching up a ton of empty office space. And they're bringing thousands of new workers with them, which are boosting the local economy. There's still a lot of work to do, but I firmly believe, and the data backs it up, that San Francisco is at the beginning stages of its next boom cycle. And there are a few subpockets of San Francisco that I think are going to experience an outsized share of growth because of these positive changes. And the first one I want to talk to you about today is Potrero Hill. And there are a few reasons why I think Potrero Hill is poised for growth starting in 2026 and into the coming years. As I hinted at earlier, a lot A lot of people are coming back to San Francisco because of return to office mandates. And it's not just tech workers, lawyers, investment bankers across all industries. Employers are mandating more office time. And a lot of these people being forced back to work and being forced back to San Francisco might want single-family homes or condos that have a lot of outdoor space. And they're also going to want a location that's convenient for them for commute purposes, whether they're commuting to San Francisco or maybe to the South Bay. And that's exactly what Potrero Hill offers. The neighborhood is on the eastern edge of the city, in between the Mission District and Dogpatch just south of Mission Bay and South Beach neighborhoods. So you're very close to downtown. The commute to work, whether by car, bike, public transit, it's very doable. Even if you're going to the office 5 days a week, you're also conveniently located next to Highway 101 and 280, as well as proximity to the Caltrain. So you have very easy access, not just to downtown, but to the East Bay, to the South Bay, and to SFO. So in my opinion, Potrero Hill is one of the best neighborhoods for commuting. And unlike most of the areas immediately surrounding downtown, places like Jackson Square or South Beach or Nob Hill, Mission Bay, Dogpatch, even SoMa, Potrero Hill isn't dominated by condos or converted loft-style buildings that have minimal or even zero outdoor space. It's one of the closest areas to downtown that offers both single-family homes and condos that have outdoor space. And even better, properties there are in line with or below the average cost of property in San Francisco. The average cost of single-family homes that sold in Potrero Hill in 2025 was about $1.95 million compared to about $2.25 in the broader San Francisco, and the average cost of condos that sold in Potrero Hill in 2025 was about $1.17 million compared to about $1.33 million in the broader San Francisco. And a lot of these properties have amazing views because of the topography of Potrero Hill, so it makes the value proposition even greater. And even more so when you consider the fact that there are incredible amenities in and around Potrero Hill, and that it has some of the best weather in all of San Francisco. You're close to the Central Waterfront, so you know, you can easily walk there or bike there, or just drive there in a couple of minutes. That means you're close to Oracle Park, You're close to Chase Center. You're close to Thrive City and all the new restaurants coming in there. You're close to 3 multi-billion dollar mixed-use communities that are being built in your backyard at Mission Rock, Pier 70, and the Potrero Power Station and Dogpatch. And immediately within your neighborhood, there are a lot of great restaurants and parks to enjoy. The main commercial corridor in the area is 18th Street. Incredible mix of coffee shops, Spanish food, Mediterranean food, Asian food, French food, American food. My favorite brunch spot in the city, Plow, is in Potrero Hill. There are always lines out the door, but it's worth the wait. And there are a ton of parks, McKinley Square, Jackson Playground, the Potrero Hill Recreation Center, Star King Open Space, and new parks being created along the Central Waterfront that I mentioned. So you will never be short on things to do in and immediately surrounding Potrero Hill, and that's why it's becoming more desirable as more people move back to San Francisco. In 2024, 32 single-family homes sold on average in about 33 days on market. In 2025, 41 single-family homes sold on average in about 28 days on the market. So more homes are selling and they're selling faster, and the same trend held for condos. 64 in 2024 versus 70 in 2025. On average, 55 days on market in 2024 versus 52 in 2025. And I think that those trends are going to accelerate heading into 2026 and the coming years. If you want to learn more about the pros and cons of Potrero Hill or any other neighborhood in San Francisco, reach out to me. I was a lawyer at one of the biggest law firms in the world before getting into real estate, and I've helped numerous people relocate here from all over the country. I'd be happy to be a resource for you. I'll put my contact info in the description below. Reach out anytime. And if you like videos about San Francisco neighborhoods, lifestyle, current events, new developments, or its incredible history, subscribe to my channel because I make videos about that stuff every single week. And if you want to stay up to date on the biggest headlines in San Francisco, I've got a weekly newsletter you can subscribe to. The link to that is in the description below as well. Now back to the neighborhoods that I think are going to boom over the next couple years. And the next one I want to talk to you about is the Central Richmond. The area doesn't have the weather or the easy commute that Potrero Hill has, but it more than makes up for it with access to A+ parks, one of the best food scenes in all of San Francisco, homes with massive flat backyards, and all you get it for under the average cost of homes in San Francisco. The Central Richmond neighborhood sits on the north side of the city, running from California Street to Fulton north to south and Park Presidio to 32nd Avenue east to west. It sits in between two of San Francisco's best parks, Golden Gate Park and the Presidio. And because the neighborhood's only about 7 blocks wide at its widest points, pretty much no matter where you live, you'll be within walking distance of both of them. And if you don't know all the incredible things about the Presidio and about Golden Gate Park, I've got separate videos on each of them going through their incredible history and all the awesome things to do at of them, go check those out. I'll link those in the description below. I won't go into all of that because I do have those separate videos, but I'll give you a very brief overview of them both. At a high level, the Presidio has beautiful views, wide open green space, historic Spanish-style architecture, preserved and restored military buildings, and awesome restaurants. Golden Gate Park has museums, lakes, a Japanese tea garden, windmills, and a ton more. They're spectacular parks. Living next to even one of them is a blessing, and if you're living in the central Richmond, you can live next to both of them. The Richmond's also known for incredible Asian food unmatched from any other part of San Francisco. The bulk of that is on Clement Street in the Inner Richmond, not the Central Richmond, but you're not very far away from it if you're living in the Central Richmond. So whether you're looking for Burmese food, Chinese food, Japanese food, Vietnamese food, or you just want an Asian market, the Richmond is going to be as good, if not better, than any other destination in San Francisco. And what's available spans the gamut from Michelin-level to hole-in-the-wall type places. And it's not just Asian food. There's a variety of cuisine available. Russian food, French food, Moroccan food, Italian food, Mexican food, you name it, it has it. Houses there also have pretty large lots compared to your standard San Francisco lot, average size close to 3,000 square feet. And those lots aren't built into hillsides like they are in Potrero Hill, Cow Hollow, Bernal Heights, and some other even more expensive neighborhoods, which means you have a lot more usable yard space. You have more flat yard space. So you can get a lot of the amenities and perks of living in more expensive neighborhoods nearby like Lake Street or Pacific Heights or Presidio Heights, but without that expensive price tag. And there are a few principal reasons for that. Number 1, because it's more western location, it trends colder and more foggy. Number 2, it's farther from downtown and the South Bay, so not the best for commuting, as I mentioned. And number 3, it doesn't have as high concentration of like shopping, coffee shops, markets, and restaurants as some of the more expensive neighborhoods, so it's not quite as walkable. So if you're not prioritizing weather or proximity to downtown and you want park access and a robust food scene, you should look at the Central Richmond. And I think people are catching on because it was one of the fastest growing markets in 2025, and I suspect it will be again in 2024. 2026. In 2024, homes sold on average for about $1.99 million, about $926 a foot. In 2025, that number rose to just under $2.1 million, about $1,071 a foot. And those homes took on average about 32 days to sell in 2024, but just 17 days on average in 2025. So homes in the Central Richmond on a price per foot basis were selling for 16% more money in almost half the time. So definitely think it's one of the neighborhoods to keep an eye on in 2026, in the coming years. The next neighborhood on my next on the list shares a lot of qualities with the Richmond and for the same reasons has become one of the most competitive markets in all of San Francisco. And I think it's going to get even more competitive in 2026. And that's the Inner Sunset. I think it's the perfect neighborhood for someone looking for nature vibes, a peaceful retreat from the hustle and bustle of the city and a more suburban vibe without actually having to move to the suburbs. The area is immediately south of Golden Gate Park, running down to Lawton and Kirkham and runs from Argüello Boulevard to 19th Avenue, east to west. Golden Gate Park is basically the neighborhood's backyard, forming the entire northern border. That's not the only park in the neighborhood. You have the Mount Sutro Open Space Preserve nearby, and you have a lot of other mini parks spread throughout the Sunset. And it's not like you're walking up or down major hills to get to these places. The Sunset has a more mild topography. There are some hills, but they're more like mild rolling hills compared to the very steep hills that you might see in like a Pac Heights, Russian Hill, Nob Hill, Noe Valley. It has a great food scene as well, although not as robust as the Richmonds. The commercial corridors are centered around 9th Avenue and Irving Street. A ton of variety— Mexican food, Thai food, pastry shops, pizza, Korean food, Japanese food, American food, Peruvian food— all of it is available there. There are a ton of little grocery stores, coffee shops, ice cream parlors, boutique retail stores, wine bars. It really has most of what you'll need on a day-to-day basis, so is a very convenient place to be. The Inner Sunset is also pretty close to Haight-Ashbury and Cole Valley, each with their their own pretty cool commercial corridors. So on the off chance you don't have what you want in the inner Sunset, you can go very close by to Pate Ashbury or Cole Valley, and you'll probably be able to find it. I recently posted a full breakdown of the entire Sunset neighborhood and how it's become one of the most competitive real estate markets in the city. You can go watch that if you want the full deep dive on the area's unique history, from sand dunes to what we know and love today, and how it's become so competitive through quasi-market manipulation. The area is known for listing properties at well below market value, creating a ton of traffic and very intense bidding wars that sometimes see sale prices more than $1 million above ask. And that's why homes in the Inner Sunset specifically sell on average in about 17 days and for at least 16% on average above ask. You have people coming in at so many different price brackets competing for the same property, and that creates a lot of competition and bids the price up. And pricing in the area has risen significantly from $1.8 million and $1,016 a foot in 2024 to $2.2 million and $1,083 a foot in 2025. And I think we're going to see similar growth here in 2026. And it probably won't be long when homes in the Inner Sunset trade meaningfully above San Francisco average. And the last neighborhood I want to talk to you about today, it's not a sleeper pick. It's not a hidden gem that isn't going to be on anybody's radar. But it might come as a surprise to you that this neighborhood is on my list for neighborhoods that are going to experience rapid growth because it consistently ranks as one of, if not the most expensive neighborhood in all of San Francisco. And that's Pacific Heights. Built into the hills on the north side of San Francisco, running from Van Ness to Presidio, east to west, and California Street to Green Street, south to north, is the neighborhood that best blends urban and suburban living. Pristine tree-lined streets, stunning architecture, beautiful parks like the Presidio, Alta Plaza, and Lafayette Parks, proximity to multiple commercial corridors on Fillmore Street, Sacramento Street, and Union Street. When you think about San Francisco in your head, I bet you one of the images that pops into your mind is from the Pacific Heights neighborhood. It's my favorite part of the city, and it's where I call home,, and I've lived for almost 6 years now. I have so many videos about Pacific Heights on my channel, from full-on like 40-minute walking tours to breakdowns of what homes and condos cost in each little pocket of Pacific Heights, from pros and cons lists. You can go check 'em out on my channel. I'll link a few of them in the description below if you wanna learn more. So I'm not gonna give you the full deep dive on Pacific Heights in this video, but what I am gonna highlight is how much growth we've experienced in the housing market for both single-family homes and for condos, even though it's already one of the most expensive parts of the city. I have dozens of clients actively looking for places in San Francisco, and the Pacific Heights neighborhood is near the top of almost all of their lists because of the incredible lifestyle it offers. And as more and more people come back to the city and more and more people choose to invest and buy property here, the more desirable it'll become, and that's driving pricing substantially. On average, single-family homes in 2024 in Pacific Heights sold for about $6.6 million, about $1,455 per foot. In 2025, that jumped to $7.5 million and about $1,690 a foot. On a price per foot basis, about 16% growth, similar to what we saw in the Richmond and Sunset. But to see 16% growth in an area where homes were 3 times more expensive on average is pretty crazy to see. And by the way, days on market fell from 56 days to 42 days, so they dropped by 2 weeks. That's incredibly fast for homes at that price point. Similarly with condos, pricing rose from $1.84 million and about $1,164 a foot in 2024— to $2 million and about $1,261 a foot in 2025. And they sold a week faster than in 2024. Not as rapid growth as for single-family homes. But when you consider the fact that the broader San Francisco condo market appreciated about 1% over that period, the growth rate that we saw in Pacific Heights is significantly more. These are huge changes and really highlight the scarcity and intense demand we have for property in Pacific Heights. And based on what I'm experiencing personally with more and more people reaching out specifically targeting these areas, I think demand is only going to increase.. It's not like they're building a lot of new property here, so it's going to drive price growth substantially in the coming years. So if you're investing in real estate, it's a safe bet in Pacific Heights. But investment aside, it's also an absolutely beautiful and pleasant place to live. Well, there you have it. That's part 2 of the neighborhoods that I think are going to experience booms as the city continues to improve heading into 2026. In the coming years, I think every neighborhood stands to benefit from the positive changes that we're seeing, but I think these are uniquely positioned mentioned to benefit more. If you want to learn more about these or any other neighborhoods in San Francisco, or have questions about how the positive changes we're seeing in the city are impacting our local real estate market, reach out to me. I've lived here for over 13 years and I've helped numerous people relocate here from all over the country. I'd be happy to be a resource for you. I'll put my contact info in the description below. Reach out anytime. And if you like videos about San Francisco real estate, lifestyle, current events, new developments, or its incredible history, subscribe to my channel because I make videos about that stuff every single week. And if you want the biggest headlines in San Francisco delivered every single week directly to your inbox, subscribe to my weekly newsletter. The link for that's in the description below too. Finally, before you go, if you want to learn more about the Pacific Heights neighborhood or about Golden Gate Park or the Presidio, I'll link a few of those videos in the description below. Go check them out. I hope you enjoyed, and I'll see you in the next one.