While New York and Los Angeles often have higher
price-per-square-foot figures than San Francisco, here’s why San Francisco
is still considered one of the most expensive markets overall:
1. Median Home Price is Among the Highest
San Francisco consistently has one of the highest median home prices in the U.S.
As of 2025, the median home price in San Francisco is around $1.3 - $1.5 million, which is comparable to or higher than Los Angeles and just behind Manhattan.
In contrast, New York has a wide range of housing—while luxury Manhattan properties are extremely expensive per square foot, there are also more affordable areas in the boroughs, which brings down the city's overall median price.
2. Limited Land and Housing Supply
San Francisco is geographically constrained by the ocean, the bay, and hilly terrain, meaning there's little room for new development.
Strict zoning laws and building regulations limit high-rise developments, keeping housing supply low.
3. Tech Industry Driving Demand
San Francisco and Silicon Valley are home to major tech companies, startups, and high-paying jobs. High-income buyers keep demand strong, even when inventory is limited.
In places like Los Angeles, wealth is concentrated in certain neighborhoods (e.g., Beverly Hills), but San Francisco has a citywide affordability issue.
4. Home Size and Property Type Differences
In New York City, many expensive properties are small condos or co-ops, which drives up the price per square foot.
In San Francisco, you’re more likely to buy a single-family home, which is larger but still extremely expensive overall.
A 1,500 sq. ft. home in San Francisco could cost over $1.8 million, whereas in Manhattan, a similarly priced unit might only be 1,000 sq. ft., making the price per square foot seem higher.
Bottom Line
Even though the price per square foot is higher in Manhattan or Beverly Hills, San Francisco is still one of the most expensive overall real estate markets due to its:
✔️ Extremely high median home price
✔️ Severe housing shortages and zoning restrictions
✔️ Strong demand from high-income tech workers
✔️ Limited land for expansion
