Why Now Is a Good Time to Buy a Condo
Photo by Jakub Żerdzicki on Unsplash
Many buyers are fixated on purchasing a single family home as opposed to a condo, and that’s understandable. But we think there’s opportunity in the San Francisco condo market right now. Here’s a few reasons why:
For the past two-and-a-half years, 2BR condo prices both in and outside of the downtown area have been flat, hovering at pre-2018 levels.
Condos tend to stay on the market longer, and are about half as likely to go for over asking price, sometimes even accepting offers under list.
Rents in San Francisco surged 13% YOY June 2024-2025 for all apartments and 16.6% specifically for two-bedroom units, which can easily run north of $6,000 per month.
If mortgage rates drop, you can refinance, further lowering your montly expenses. Rents tend only to go up.
Long-term trends still indicate upward growth in value. That said, even if your condo doesn’t appreciate a dime, it’s still a sound investment.
When you invest in property, you’re investing into an asset; at the end of the mortgage, you own that asset outright. By comparison, when you rent, the only investment you’re making is into your landlord’s pocket. Let’s look at some hypothetical numbers to compare buying a $1 million condo versus renting at $6,000 per month — and show why ownership still comes out ahead even if the condo never appreciates.
The Buying Scenario
Condo price: $1,000,000
Down payment: 20% ($200,000)
Loan amount: $800,000
Mortgage: 6.5% fixed for 30 years
Monthly mortgage payment: ≈ $5,056
Other Ownership Costs (per year)
Property taxes: $11,800 (1.18%)
Insurance: $1,500
HOA dues: $9,600 ($800/month)
Maintenance: $10,000 (≈1% of home value)
Tax Benefits
Mortgage interest and property taxes are deductible.
Over 30 years, that yields about $480,000 in tax savings (assuming a 35% marginal tax bracket).
Net result after 30 years:
Total owner costs ≈ $2.75M
Less tax savings ≈ $480K
Net cost ≈ $2.27M
But you also own a $1M condo outright.
The Renting Scenario
Monthly rent: $6,000
30 years of rent: $2,160,000
At the end, you own nothing.
Side-by-Side Comparison
| Buying | Renting | |
|---|---|---|
| 30-Year Cash Outflow | ≈ $2.27M | $2.16M |
| Asset Owned After 30 Years | $1M condo | $0 |
| Net Wealth Position | + $1M | – $2.16M |
Even after factoring in HOA fees, maintenance, insurance, property taxes, and tax savings, ownership puts you nearly $1 million ahead of renting over the same timeframe.
The Break-Even Point
Our year-by-year analysis shows that ownership actually pulls ahead of renting very early on — within the first year. That’s because, while the upfront down payment is hefty, every mortgage payment builds equity while tax deductions offset part of the cost. Renting, on the other hand, is pure expense with no return.
The Takeaway
Even in a flat market where your condo’s value doesn’t rise, owning still builds long-term wealth. Instead of spending $2.16M on rent and ending with nothing, you could end up with a fully paid-off property worth $1M — plus the stability and freedom that come with homeownership.
Buying a condo isn’t just about betting on appreciation. It’s also about turning a major monthly expense into an investment in your own net worth.
Ready to buy a condo? Contact us, and we’ll help you find the perfect one.
ChatGPT was used in the generation of this blog post, but it was reviewed and edited by a human.