RentVSBuy

Several recent studies, when combined, prove that buying a home in San Francisco is equal or less than the monthly rent of an apartment.

According to Rent Jungle, the average 2-bedroom unit in San Franciscorents for $4,754.

https://www.rentjungle.com/average-rent-in-san-francisco-rent-trends/

In contrast, the average 2-bedroom condo sells for about $1,225,000, according to recent research from Trulia. Most mortgages require a down payment of 20%, meaning the monthly payment for the loan would come to around $4,700. 

The ownership option also comes with tax deductions estimated at 30-35%. These tax savings of about $1,645 offset any payments the new owner has to make for HOA dues.

No of Bedrooms	April 14-July 13	y-o-y	3 Month Prior	1 year prior	5 years prior
1 bedroom			$845,000
2 bedroom			$1,225,000

Ali Safavi, a Santa Monica real estate investor emphasizes the importance of educating the community on the advantages of home ownership. “People agonize for years on rent vs. own and I can’t stress enough how wrong most of the analysis goes,” says Safavi. “They argue that living in a rent controlled unit means saving tons of money.  Yet, anyone who bought a condo in San Francisco ten years ago has most likely doubled the value of their homes. These people actually earned money. While it is true that real estate has its cycles and 2008 was a distressing time, over the long run those who have made the investment are most likely better off.”

A closer look at the Trulia study showed that it took just five years for an average condo to double in value.  And while the market will always fluctuate, there are clear indications that buying a home will, over time, prove to be the smarter financial investment.