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I recently read an article about the 2026 housing market in San Francisco, California. It suggested that you will need to earn $333,000 per year to afford a median priced home. I write about the housing market often on City for Millennials because I am concerned about the future of home ownership for millennials.
Furthermore, the article estimates that only 20-25% of Bay Area residents earn enough to purchase a median priced home. Lower priced homes are either in disrepair and will cost more overall, or are snatched up after a large bidding war.
What about the other 75% of residents? Will we ever be able to afford a home in this expensive city? While the San Francisco Bay area housing market may be the hottest on record, there are other cities are experiencing similar challenges.
RELATED POST: 5 Real Estate Markets That Are Too Hot Right Now. The last 3 are unexpected!
Bay Area Housing Market Woes
I live in the San Francisco Bay area, and may be a bit frustrated with the housing market as a result. I often see real estate listings that make me laugh, and then cry.
For example, a small 1,200 sq ft, 3 bedroom, 1 bath house had the following description: “No open houses. Strong cat smell in house. Property may need a cash buyer. Bathroom has been gutted. No reports.”
In many places in the world I’d recommend the listing description be edited to be a bit more inviting. That said, in the Bay Area, it is a sellers market. An owner could include a picture of a pile of manure on the lawn and it would likely sell itself. The small, cat urine soaked house described above sold for over $800,000.
These days, hot housing markets require buyers to pay cash, offer no contingencies, and compete against many other bright eyed millennials (and boomers!) fighting to enter the housing market. Sellers will sometimes artificially lower the asking price to stimulate competition, often resulting in a sale price 20-30% over asking. Crazy!
In this post, we dive into 3 of my favorite real estate listings that will make you question your ability to ever own a home in a hot housing market. I should specify, these are three listings in the San Francisco Bay Area.
If you have seen similarly funny/sad housing market listings in your expensive city, please email them to me ([email protected]). Alternatively, you can enter them into the comments below!
Let’s have some fun with this…because the following 3 listings can be a bummer. Laughing is better than crying right?!
Here we go:
Oakland, CA
This little charming bungalow listed for $629,000 in September 2017. Note that I removed the address for the owner’s privacy.
Attending open houses is a fun Sunday tradition, yet recently, it’s become extremely frustrating. Rachael and I went to this open house because the asking price was just barely in our price range. We got excited!
Our excitement bubble burst quickly.
The property was under contract in a few days after the open house, and sold within a month. Did you see how much it sold for? $900,000!
Recall that it was listed for $629,000. The $900,000 sale price is $271,000 more than the asking price! That’s 43% over asking!
Furthermore, the sellers bought this house 7 years earlier (2010), for only $250,000. That means the sellers paid less for this house than the amount it sold over asking.
To emphasize, they sold this house for $650,000 more than what they paid for it in 2010. That’s nearly $100,000 of growth per year!
We did not have a chance. Competing for this house would be like a high school basketball team going up against the Golden State Warriors.
This house is not in nicest of neighborhoods either.
Mountain View
Mountain View, California is an expensive area. The schools are decent, and the proximity to tech companies is great for those working in the industry. So, I wasn’t surprised to see that 1,200 sq ft. 3 bedroom, 2 bath sold for over $1.6 million. That’s a ton of money, but it’s to be expected for the neighborhood it is in, right?
I did not expect this……
The pictures speak for themselves!
“Opportunity Knocks!…ENTER AT YOUR OWN RISK”.
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Again, this house sold for over $1.6 million. Sure, I feel bad for the sellers, they did lose their home to a fire. However, the new owners essentially spent $1.6 million for a small plot of land! They are going to have to completely rebuild the house!
A typical 3 bedroom, 2 bath in this area sells for over $2 million. Houses receive 5-15 competitive offers, selling more than 25% over asking.
Belmont, CA
Trends in Belmont, CA show an 8% year-over-year increase in median sales price and a 4% rise in median rent/month. In 2026, the median sales price was $1.7 million.
Take a look at this charming 3 bedroom, 2 bath home in Belmont, CA! And guess what, it was listed at only $825,000! What a steal for this area! OMG!
Shoot. It sold for $1.25 million 48% more than asking. All cash, within a month. Grrrr.
But wait. It get’s even better.
Take a look at the inside of this “charming” house!
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What the heck were they cooking in there?!
Stories like these are common for the Bay. How are millennials going to afford to own a house? Are we destined to rent our entire lives? It’s possible that the housing market bubble will burst. But, city population growth is on the rise, which mean more demand.
I’m an optimist, so I’m going to keep searching for solutions.
Interested in reading another story that will make you laugh?
RELATED POST: Looking to invest in real estate but cannot afford to purchase a home? Check out: Fundrise Review | Invest in Real Estate For Only $500.
Question for you: What strategies do you have to buy a home in a city?
Go ahead and post in the comments.