San Francisco Only U.S. Market to See Home Values Decline

San Francisco may have been the only U.S. city to see its home values in November down from 2019, but some might say it’s all relative.

Although the city’s typical home value fell 3.7 percent from 2019 to $1.26 million this year, San Francisco is still pricey compared to other markets across the nation, according to a San Francisco Standard report citing data from Zillow’s Home Value Index.

The real estate platform said its index measures changes in its Zestimates, which are home value estimates generated from public and tax records, recent home sales and other public data. The index captures homes in the 35th to 65th percentile and aims to reflect changes in the marketplace on a regional basis when reporting values, according to Zillow.

San Francisco’s typical home value is still well above the average of $357,469 for the country, which was up 2.5 percent from a year ago according to Zillow data as of November.

“Five years ago, San Francisco was far and away the most expensive city to buy a home in the U.S.,” Zillow senior economist Kara Ng told the Standard.

In some ways, the reversal in home value growth could suggest a settling of pricing in the city. Home values were climbing in San Francisco until 2022, when the city began feeling the effects of high interest rates, the Standard report said.

Even with the contraction in value, San Francisco’s typical home values in November 2024 still beat out prices in cities such as Oakland, Washington D.C., New York, Boston and Los Angeles.

Zillow said earlier this month in its 2025 housing market outlook it expects a modest growth in sales and home values next year as mortgage rates slowly fall.

The company projected 100,000 more U.S. home sales in 2025 from 2024 to total 4.16 million. Home values are expected to rise 2.2 percent next year, Zillow estimated.

—Kari Hamanaka