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Over the past few years, many residents of San Francisco have relocated to Oakland for more space and lower home prices. And a good number of folks have done the reverse by moving from Oakland to San Francisco, perhaps to be closer to work.
If you have the luxury of deciding where to live but can’t choose between these two Bay Area cities, keep reading below.
Summary: This guide provides some key information about Bay Area housing market trends to help you compare and contrast between buying a home in Oakland vs San Francisco, from a home buying perspective.
Located on the eastern side of the San Francisco Bay, Oakland is a city of about 440,000 residents. Known for its rich arts and culture scene, diverse culinary landscape, and burgeoning tech industry, Oakland offers a more affordable alternative to San Francisco.
The Oakland real estate market is diverse, with a mix of Victorian homes, modern condos, and trendy lofts. While prices have risen significantly in recent years, Oakland still offers good opportunities for home buyers who want more space than what’s available in San Francisco.
Situated on a hilly peninsula, the city of San Francisco has a population of approximately 808,000. The city is known for its iconic landmarks, like the Golden Gate Bridge and Alcatraz, as well as its tech-driven economy and progressive culture.
The San Francisco real estate market is one of the most expensive in the country, with high demand and limited inventory. Homes often sell above the asking price, especially in desirable neighborhoods like Pacific Heights and Noe Valley.
Despite sky-high San Francisco home prices, this city remains a top choice for home buyers seeking a cosmopolitan lifestyle and proximity to Silicon Valley.
The Oakland and San Francisco real estate markets are similar in some ways, and very different in other ways. Let’s start with the things they have in common.
Despite these commonalities, the two housing markets exhibit clear differences when it comes to home prices and overall San Francisco and Oakland housing affordability. So let’s look at pricing next.
Note: These figures are based on data provided by Zillow in January 2025.
As you can see, the median (or midpoint) home price for the city of San Francisco is more than $500,000 higher than the median for Oakland.
This is one reason why so many people have relocated from San Francisco to Oakland over the past few years, a trend partly fueled by the rise of remote work.
An analysis by the San Francisco Chronicle showed that Alameda County (and Oakland in particular) was the second most popular destination for the thousands of people who left San Francisco over the past few years.
The Oakland housing market also moves at a faster pace, when measured by the length of time homes stay on the market before going under contract. This is partly due to the East Bay cities lower home prices and larger pool of buyers.
Bay Area home buyers often have to rely on specialized mortgage products due to the high-cost nature of this real estate market. This is true for both Oakland and (especially) San Francisco.
Here are some of the most popular mortgage options for Bay Area buyers in these markets:
These are government-backed loans with more lenient credit score and down payment requirements as low as 3.5%. In a high-cost market like Oakland or San Francisco, this loan program can facilitate homeownership by allowing for a low down payment. But FHA loans in the Bay Area require mortgage insurance, regardless of the down payment amount.
This is a “regular” mortgage loan that’s not backed by the government. Conventional financing often requires a higher credit score and sometimes a larger down payment, when compared to the FHA option mentioned above. But it also allows borrowers to avoid paying mortgage insurance, if they make a down payment of 20% or more.
The Department of Veterans Affairs (VA) home loan program serves active-duty military personnel, veterans, and some surviving spouses. It allows borrowers to purchase a home with no down payment and no private mortgage insurance. In a costly housing market like Oakland or San Francisco, this zero-down mortgage option can be a major advantage.
These mortgage loans exceed the conforming loan limits set by Fannie Mae and Freddie Mac. In high-cost areas like the Bay Area, loan limits are set higher than in the rest of the U.S. Even so, many home prices still require jumbo financing. These loans are commonly used in both Oakland and San Francisco, California.
In summary, buying a home in Oakland vs San Francisco has its differences. There are certainly some similarities between the two markets, but there are also marked differences; namely, home prices are much lower in Oakland vs San Francisco. It’s certainly worth it to take some time to conduct a Bay Area real estate comparison to determine where to set your sights on your next home purchase.
If you’re looking to buy in Oakland, San Francisco, or anywhere else in California, we can help. At Sammamish Mortgage, we offer various mortgage options for Bay Area buyers, including conventional and jumbo loans in San Francisco. Visit our website to get an instant rate quote or call us today to have your mortgage questions answered!
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.