Where the San Francisco Housing Market Is Finding Its Momentum

Sydney Winstead • January 29, 2026

Condo Market Meets Tech Boom

San Francisco’s housing market is showing renewed momentum as buyers re-engage in thoughtful, lifestyle-driven ways. Recent data points to increased activity — particularly in the condo market — signaling growing confidence in a city that continues to evolve alongside shifting work patterns and a strong tech resurgence.


Over the past year, condo sales in San Francisco rose by double digits, while prices remained relatively steady. That balance has created a compelling window of opportunity for buyers who are prioritizing flexibility, amenities, and long-term value. Rather than chasing rapid price appreciation, today’s buyers are focused on livability, location, and homes that support both personal and professional lifestyles.


One of the key drivers behind this momentum is the return of high-earning workers tied to the city’s expanding AI and tech sectors. As rental rates continue to climb, many are choosing ownership as a more strategic, long-term option — especially in newer condo buildings that offer modern finishes, shared amenities, and a lock-and-leave lifestyle well-suited to busy schedules.


At the same time, limited new housing construction over the past decade has made quality inventory increasingly valuable. This has renewed interest in existing buildings that may have previously seen softer demand, particularly in neighborhoods close to employment hubs, dining, and cultural centers.


What’s notable about this shift isn’t just the increase in sales — it’s the mindset behind them. Buyers aren’t rushing; they’re re-entering the market with intention. They’re asking smarter questions, weighing lifestyle choices, and investing in homes that align with how they want to live in San Francisco today.


As the city continues to attract innovation, talent, and long-term investment, this renewed housing momentum reflects a broader sense of confidence. It’s less about a dramatic rebound and more about a steady, meaningful recalibration — one where buyers, sellers, and the city itself are moving forward together.


Read more here

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*Rendering © Bjarke Ingels Group* Updated plans have been released for 35 South Second Street in Downtown San Jose, a mixed-use development designed by Bjarke Ingels Group (BIG) . The project, referred to as the Fountain Alley development , is scheduled for review by the San Jose Planning Director and reflects a shift from an earlier office-and-housing proposal to a predominantly residential program. Project Overview The revised plans call for two residential towers, rising 27 and 28 stories , with a total of 768 apartments and ground-floor retail. The development is part of a broader downtown San Jose master plan led by Westbank and Urban Community , which includes multiple residential and mixed-use sites throughout the city. The project will span approximately 831,600 square feet , including residential units, ground-floor retail, and basement parking. Bicycle parking is planned for 417 spaces, with vehicular parking located in a multi-level subterranean garage. Change in Use Earlier versions of the project included a stronger emphasis on office space. The updated proposal reflects a reconfiguration toward residential use, consistent with other recent revisions within the larger Westbank and Urban Community portfolio in downtown San Jose. A related site at 180 Park Avenue began demolition and excavation in 2022, though work was paused due to an archaeological discovery. Recent reporting indicates that plans for that site have also been revised to focus on residential units rather than office development. Design and Site Details BIG is serving as the project architect, with Bionic as the landscape architect. Renderings show residential towers with balconies, integrated landscaping, and a pedestrian-oriented plaza connecting South Second Street with surrounding streets. Exterior materials are expected to include aluminum, terracotta-toned glass-fiber-reinforced concrete, and curtainwall glass. The development site occupies approximately 1.25 acres along South Second Street, between Santa Clara Street and San Fernando Street, near the Bank of Italy Tower. Housing Mix and Affordability The project is proposed to include: 177 studios 413 one-bedroom units 152 two-bedroom units 26 three-bedroom units Approximately 5% of the units will be deed-restricted for very low-income households, utilizing California’s State Density Bonus law . Next Steps The project is scheduled for review at a Planning Director Hearing on Wednesday, December 17 , to be held virtually via Zoom with opportunities for public comment. Read more and see renderings here ➡ SF YIMBY