Investing in Real Estate: Up-and-Coming Neighborhoods in the Bay Area

Investing in Real Estate: Up-and-Coming Neighborhoods in the Bay Area

The San Francisco Bay Area is experiencing a lot of growth in certain up-and-coming neighborhoods - which you’ll know all about by the end of this 5-minute article. 

When someone says “Bay Area” to you, they are talking about the area surrounding San Francisco Bay, San Pablo Bay, Grizzly Bay, and Suisun Bay. In total, nine counties are part of the Bay Area.

Quality of life is high in the Bay Area, and even though prices are much higher than in other areas, affordability can be found. If you want to live within walking distance of the Apple Loop or on the waterfront, homes will be costly, but certain neighborhoods are still undervalued.

Golden Gate Bridge

A view of the Golden Gate Bridge via Joel Bradford

The Bay Area’s up-and-coming neighborhoods should provide:

  1. Relative affordability compared to the Bay Area’s more pricey neighborhoods. 
  2. Reasonable expectation of growth, both economically and in terms of property value.
  3. Access to education, healthcare, and shopping - especially for basic necessities. 
  4. Properties for sale in these Bay Area neighborhoods.

Five of the Bay Area’s Up-and-Coming Neighborhoods

Consider this list when you chat with your realtor. Your next investment could be on this list.

If you haven’t seen a full map of the Bay Area, remember that it covers an extremely large area (around 6,900 square miles). 

Mid-Market

Also called Central Market, Mid-Market runs from Fifth Street to Van Ness Avenue and includes Market Street. Young professionals from the IT and tech sectors choose to live and work here, conveniently near the San Francisco - Oakland Bay Bridge. To the north, the Golden Gate Bridge leads to Sausalito and Marin City.

Mid-Market gives residents a front-row seat in a beautiful city with endless amenities, like the Westfield shopping mall. Apartments are the most common form of accommodation in the area, which is part of the 94103 zip code. 

Market Street

Market Street via Andreas Praefcke

The 94103 zip code had a median sale price of around $750,000 in August 2023. Since the same time last year, homes are priced roughly 14% lower in this zip code, which contains Mid-Market. A lot of residents rent their homes, rather than buy them.

Measuring the median sales price of the Mid-Market by using the 94103 zip code is not accurate, but it should give some idea of nearby median prices.

Hayes Valley

Only around 4,000 people are lucky enough to call Hayes Valley their home - and lucky is the correct word to describe this up-and-coming neighborhood in the Bay Area. 

This area is mostly full of rental properties and it’s dense with an urban feel. The clubs, bars, and rest of the nightlife in Hayes Valley attract lots of young professionals who work nearby.  

Hayes Valley has revitalized itself over the years into quite an upscale neighborhood, especially on Hayes Street. This area is only several square blocks in size, but it holds plenty of coffee spots, quiet parks, and daytime activities. 

Patricia's Green in Hayes Valley

Patricia’s Green in Hayes Valley via Steve Boland

The median home price for Hayes Valley was roughly $1.3 million in August 2023 and the majority of residents are renting.

Despite all the boutique shopping on the main commercial stretch, the living areas of Hayes Valley are quiet and have low amounts of traffic.

South Market

The South of Market, more casually and cooly named SoMa by locals, is quite massive. Mission Bay and South Beach are part of SoMa, which looks like it might have great investment potential. It’s worth noting that the Giants play baseball in SoMa at AT&T Park. 

This neighborhood is perfect for young workers who want to explore the city on weekends and experience San Francisco’s high-energy nightlife. It’s considered to be one of the best places to live as a young professional in the Bay Area.

Warehouses are characteristic of the area, for now, but there are a lot of attractions and amenities scattered throughout the neighborhood. It started to become a business hotspot because it was so near to shipping centers feeding other parts of this city. 

Nowadays, this is one of San Francisco Bay Area’s most promising up-and-coming neighborhoods, which mainly offers apartments and condos for rental or outright purchase.

SoMa Neighborhood

SoMa neighborhood via Ken Lund

South of Market uses the 94103 zip code, which had a median home price of $750,000 in August 2023. 

It must be said that 94103 encompasses more area than just SoMa, so it is not an accurate representation of South of Market’s median home price.

Parkside

The Parkside neighborhood was first developed in the early 1900s when charming cottages were the norm. The area took on a seaside Mediterranian styling at some point and became one of the gorgeous up-and-coming neighborhoods in the Bay Area. It’s not a large neighborhood and has about 12,000 residents.

Many of the homes in Parkside (part of the Sunset District) are nestled beside one another and are usually just two stories tall. While they look modest and well-maintained on the outside, the Parkside homes often hide luxurious interiors behind unassuming exteriors. 

Between 27th and 28th Avenue in Parkside

Between 27th and 28th Avenues in Parkside - Paul Sullivan

The median home prices in August 2023 were roughly $1.4 million in Parkside and most residents own their homes. 

With such an amazing location, practically in the sands of Ocean Beach, home prices are surprisingly reasonable. It’s not difficult to find properties around the million-dollar mark, though several gorgeous properties sit at the $1.5 million list price. 

Golden Gate Heights

For around 11,000 residents, Golden Gate Heights is a lovely place to live with views of the Pacific Ocean to match. It’s a quiet residential area with a hilly landscape, as the name of the neighborhood suggests. 

Residents can spend time in the 7-acre Golden Gate Heights Park and slowly walk up the 16th Avenue Tiled Steps, which have become a tourist attraction. Some of the other parks like Hawk Hill and Grand View Open Space are smaller, but still great places for strolls or daily dog walks.

Top of the steps in Golden Gate Heights

Top of the steps in Golden Gate Heights via zoxcleb

The median home price here is roughly $1.5 million

Homes here look quite similar to the ones in Parkside. Single-family residential homes in the area usually have two or three floors, often making great use of rooftop space.

If you have any questions about the up-and-coming neighborhoods - we are here to help.

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If you have more questions about what to expect from the markets around the Bay Area, don’t be afraid to reach out to us today. Our experts are experienced in all property types and the entire San Francisco Bay Area, and we can help you to find what you need to know today.

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