Condo vs Apartment in San Francisco: Prop 13, TICs, and a Cyclical Market
Updated 20 May 2026
San Francisco is the most regulated US housing market: Prop 13 caps tax growth, the condo-conversion lottery is the bottleneck, and TICs are an SF-only structure that catches outsiders. Add a 15% to 25% price correction since 2022 and SF in 2026 looks more interesting for ownership than it has in years. Here is the math, with the TIC trap explained.
SF snapshot (May 2026)
- Median condo sale price: around $1.05M (SFAR, Q1 2026)
- Median rent (1BR): around $3,500 (Apartment List, April 2026)
- Effective property tax: roughly 1.2% in year 1, +2% per year under Prop 13
- Median HOA: $600 to $1,400/mo, often higher in luxury high-rises
- Typical break-even: 6 to 9 years for condos, 8-plus for TICs
Monthly comparison: $1.05M SF condo vs $3,500 rental
Assumes 20% down, 30-year mortgage at 7.0%, year-1 Prop 13 reassessment.
| Cost line | Buy | Rent |
|---|---|---|
| Mortgage P&I (30-yr, 7.0%, 20% down) | $5,587 | - |
| HOA fees (median SF condo) | $900 | - |
| Property tax (1.2% reassessed) | $1,050 | - |
| HO-6 insurance | $55 | - |
| Rent (median SF 1BR) | - | $3,500 |
| Renter's insurance | - | $20 |
| Total monthly outflow | $7,592 | $3,520 |
Sources: SF Office of the Assessor-Recorder, Cal Tax Foundation, SFAR market data, Freddie Mac PMMS.
Condo vs TIC vs co-op in San Francisco
Three legal structures, three financing realities, three resale outcomes. Know which you are looking at before any offer.
- Condo: deeded unit, conventional financing, full HOA, fastest resale. Premium price.
- TIC: fractional share of whole building, often shared mortgage (or fractional loan at 1% to 1.5% rate premium), slow resale, 15% to 25% price discount.
- Co-op: rare in SF, shares in a corporation, board approval required, harder to finance. Mostly older Russian Hill buildings.
- Condo conversion: the SF lottery (now largely closed to new applicants without bypass) can turn a TIC into a condo, adding 20% to value but taking years.
Source: SF Planning Department Condominium Conversion FAQs, SF Department of Building Inspection.
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