San Francisco is a beautiful city. There is always something new to discover and every pocket you visit is different. There are micro climates throughout the city, micro markets in relation to neighborhood pockets and micro pricing in relation to property type.
Let’s start with San Francisco’s microclimates. Mission/Dolores, Duboce Triangle, Castro, Bernal Heights, Noe Valley, North Beach, Hayes Valley, SoMa (South of Market), Tenderloin, Japantown, NoPa are known for a sunnier climate with less fog compared to other parts of San Francisco. Cole Valley, Haight Ashbury, Richmond, Sunset, Twin Peaks, Ingleside, Portola, Crocker Amazon, Glen Park, Excelsior, Outer Mission, Balboa, Parkmerced and Stonestown are known for being foggier with a colder climate. Pacific Heights, Marina, Cow Hollow and Presidio Heights can be a mixture of the two: sometimes foggy, sometimes sunny. Mission Bay, Embarcadero, Downtown, Chinatown and Dogpatch are known to be windier but still sunny. The micro markets that exist across San Francisco neighborhoods are varied and interesting. Particular neighborhoods in San Francisco can be more family friendly than others but in saying this, it always comes down to people’s individual preferences. I am originally from Melbourne and growing up, I lived in Toorak but my cousins lived in St. Kilda because it fit my aunt and uncle’s artistic lifestyle - they were both fashion designers. Equally, in San Francisco, the former owners of this amazing loft style 6 bed, 9 bath home with Japanese style garden and koi pond located in the SoMa district brought up their little girl in that neighborhood and absolutely loved living there because it fit their lifestyle. The wife was an artist and the husband enjoyed renovating as a hobby.FAMILIESFamilies in San Francisco love Noe Valley, Sunset, Richmond, Westwood Park, St. Francis Wood, Sea Cliff, Pacific Heights, Cow Hollow, Marina, Presidio Heights, Lower Pacific Heights and Bernal Heights. Some areas are more expensive than others.The main thoroughfare in Noe Valley is 24th St with a Whole Foods, toy stores, SF Fire Credit Union, Chase Bank, many restaurants such as Barney’s Gourmet Hamburgers and cafes such as Philz Coffee. In the Sunset, the main shopping and restaurant strip is 9th Avenue and in the Richmond District, it’s Clement St. The main shopping strip for Presidio Heights is both California St and Sacramento St with restaurants such as Super Duper and Spruce. For Cow Hollow and Pacific Heights the closest thoroughfare is Union St which is full of restaurants, bars and even a Sephora! In the Marina District, the main shopping thoroughfare is Chestnut St, there are many cafes and restaurants including our beloved Australian coffee shop Bluestone Lane and there’s even an Apple store. It’s pretty neat: I don’t know any neighborhoods that could say they have their own Apple store. Westwood Park’s main street has a Whole Foods, a Philz and a bunch of restaurants. The Saint Francis Wood thoroughfare is West Portal Ave with shops, restaurants and cafes. A neighborhood hack for buyers with lower budgets is buying in Lower Pacific Heights because it is still a great area and close to the strip of shops, restaurants and cafes on Fillmore St. Bernal Heights is a quaint neighborhood that has a main thoroughfare on Cortland Avenue with shops, cafes, restaurants and a small supermarket. 
SINGLES AND COUPLESSingles and couples in their 20s and 30s love NoPa, Mission, North Beach, Pacific Heights and the Marina. The main thoroughfare in NoPa is Divisadero St with lots of cool restaurants, bars and cafes including The Mill which hands down does the best sourdough bread, baked fresh on site. In the Mission, the main shopping strips are Valencia St, 18th St and 24th St with many bars, live entertainment venues, cafes, restaurants and bakeries such as Beehive, Makeout Room, Ritual Coffee, Four Barrel Coffee, Señor Sisig, Delfina and Tartine. Columbus Avenue in North Beach is a lively night spot with bars, clubs and restaurants. It is also a great day time spot with patisseries and cafes such as Victoria Pastry Company and Reveille Coffee. 
San Francisco gets a bad wrap on the issues we face with our homeless population but these issues only plague certain neighborhoods. The Tenderloin, Civic Center and SoMa are all areas that have challenges around homelessness, mainly because these are the areas where social services are accessed. 16th Street and 24th St BART are also challenging areas but once you get a block away to Valencia St, it vastly improves. There are streets that need be avoided and if you know which streets they are, you can go around them. The main streets to avoid in the areas mentioned above, and this is by no means an exorbitant list, are Bryant St, Harrison St, Folsom St, Howard St, Mission St, Market St, Van Ness and 16th St. I am very optimistic about the changes that our new San Francisco Mayor, Daniel Lurie is making. He has consolidated teams from various districts so they can all work together and become more efficient in solving the issues our homeless population face. This is going to help them get the services they need faster.AREAS FOR INVESTMENTThe areas that are going to see the most appreciation over shorter periods of time will be the areas that are more challenged right now but with the AI Boom coming to San Francisco, the homes in these areas will see a faster gain in value. These areas are Mission Bay, Dogpatch, SoMa and South Beach. AI companies leased just under 2 million square feet in office space just last year. Every single technology boom that has happened, has happened in San Francisco. Historical data shows that every time the San Francisco market sees a decline in property value, the next boom sees even higher property values than the last boom. In terms of where the market is at, I would say we are somewhere close to the bottom with the interest rates being high. It is currently a buyer’s market, meaning that you have more power at the negotiating table and can oftentimes get properties for less than the list price. So there’s an opportunity to get a lower price at the higher interest rate and then when the interest rates come down, you refinance at the lower rate to bring your monthly payment down. There is a direct correlation between interest rates and home values because as interest rates decrease, more buyer’s come back to the market, thus increasing demand and driving up prices. With decreasing interest rates, you will also see an appreciation in the value of your home. 
PROPERTY TYPES TO BUYLastly, the micro pricing based on property type are a serious consideration for homebuyers. Single family homes perform the best in terms of appreciation because there is the least amount of supply and the supply never meets demand. A single family home hasn’t been built in San Francisco for decades and single family homes are always in demand with the exception of higher price points of $6M and above. Multifamily buildings (2-4 units) are a great option for an owner occupied situation because you can get a home loan interest rate instead of the higher investor interest rate and you don’t have to put down the usual 30% you would have to if you were buying the property as a straight investment. Rent control has a bad reputation in San Francisco but you can still find properties that are collecting a decent amount of rent, maybe not market rate rent but not too far from it. Condos are a great first time homebuyer option for single people, couples and families because they are generally less expensive than single family homes and still see appreciation over time. Sometimes you can even find condos over two levels which gives it more of a single family home feel without the higher price point. A Tenancy In Common (TIC) apartment is generally less expensive than a condo and is a great option for people who have lower budgets. In terms of appreciation, TICs appreciate at a slower rate but the value does still appreciate over time.
neighborhood rankTo recap, I have ranked neighborhoods in the city of San Francisco from favorite to least favorite using an A - E letter system. This is not to say that the D and E neighborhoods are terrible to live in, they have their good points too. The letter system is all based on personal preference. A: Pacific Heights, Marina, Cow Hollow, Presidio Heights, St. Francis Wood and Sea Cliff.B: Russian Hill, Telegraph Hill, North Beach, NoPa, Hayes Valley, Noe Valley, Bernal Heights and Lower Pacific Heights.C: Mission/Dolores, Twin Peaks, Cole Valley, Castro, Duboce Triangle, Sunset, Richmond, Westwood Park, Japantown and Haight Ashbury.D: Outer Mission, Park Merced, Stonestown, Balboa, Downtown, Chinatown, South Beach, Mission Bay and Dogpatch.E: Tenderloin, Civic Center, SoMa, Portola, Hunters Point and Bayview.
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