The largest shift of wealth in American history, aka the Great Wealth Transfer, is happening right now, and it’s already reshaping how people buy, sell, and invest in San Francisco real estate in neighborhoods like Noe Valley, Bernal Heights, SoMa and many more.
As the Silent Generation, Baby Boomers, and Gen Xers pass down trillions to Millennials and Gen Z, new home buyers are stepping into the market, often with a leg up thanks to family support. Add in the energy from the AI tech boom, and you have a city where real estate trends are moving fast.
Here’s how these market forces are coming together, and what they could mean for your next move.
Over the next 20 years, an estimated $84 trillion will move from older generations to their children and grandchildren. Most of this—about $72.6 trillion—will go directly to heirs, especially those in Gen X, Millennials, and Gen Z. In San Francisco, where home prices are high and affordability is a constant challenge, this transfer is already helping more young adults buy homes or invest in property.
For many, receiving an inheritance or a financial gift is what finally makes homeownership possible. Down payments that once felt out of reach are now within grasp. Some families are even buying San Francisco investment properties together or helping their adult children get started in the market.
If you’re thinking about this kind of move, we’ve put together a guide on investing in real estate for your adult children in San Francisco.
Despite the headlines about Millennials and Gen Z entering the real estate market, Baby Boomers are still the most active buyers and sellers in the country. In fact, they now account for 42% of buyers and 53% of sellers—more than any other generation. Their secret: equity.
Boomers have typically owned their homes for years, riding the wave of rising home values. Many are downsizing their San Francisco home or moving closer to family, and they’re often able to buy their next home with cash. This gives them a big advantage in a competitive San Francisco real estate market, where high mortgage rates and down payment hurdles are making it tough for first-time buyers.
If you’re planning to sell and want to attract these motivated buyers, explore our San Francisco seller resources to learn how we can help.
Maybe you're an empty nester or retiree looking to downsize and move within California? You may qualify to keep your current property tax base through Prop 19. Learn more in our Prop 19 Guide to Downsize Your San Francisco Home.
We recently had the pleasure of helping two retired couples from outside the city to purchase a pied-à -terre in San Francisco. Both couples were affluent retirees who wanted a second home where they could enjoy the city’s world-class dining, culture, and entertainment, all while maintaining their primary residences elsewhere.
For these clients, purchasing a pied-Ã -terre in San Francisco unlocked the lifestyle and flexibility they needed to make the most of their retirement years. We helped them navigate the unique considerations of second-home buying in SF, including neighborhood selection, property type, and long-term value. We also helped them identify the right opportunities among available properties and negotiate favorable terms, making sure that their investment would serve as both a personal retreat and a smart addition to their portfolio.
If you’re considering a second home or pied-à -terre in San Francisco, whether that's for retirement, family visits, or as part of your generational wealth strategy, our team has the experience and insight to help you find the perfect fit.
As we track the wealth transfer and real estate, younger buyers aren’t just following in their parents’ footsteps. Many are looking for homes that fit their own values and lifestyles. Features like sustainability, walkable neighborhoods, and flexible spaces for remote work are high on their wish lists. They’re also more open to alternative investments, like private equity or digital assets (like Bitcoin), and often want to blend traditional real estate with new strategies.
Still, real estate remains a constant for all age groups. Even as Millennials and Gen Z explore new ways to grow wealth, buying a home in San Francisco is a top goal. Inheritance or family gifts are what’s helping many clear the biggest hurdle of getting that first foot in the door.
Curious about which San Francisco neighborhoods are seeing the most activity from next-gen buyers? We track trends across the city and can help you find the right fit.
San Francisco’s AI sector is booming, and that’s bringing a fresh wave of high-earning buyers into the market. Companies like OpenAI and Anthropic are hiring rapidly, and their employees are looking for homes close to work, as well as investment properties that will grow alongside the city’s tech economy.
This influx of new wealth is adding another layer of homebuyer competition, especially in neighborhoods near tech hubs like Hayes Valley and Mission Bay. Consider this another type of wealth transfer increasing demand for San Francisco real estate.
For a closer look at how AI is changing the local market, check out our recent post on how next-gen homebuyers are using AI wealth in San Francisco real estate.
With so much money changing hands, it’s smart to think ahead. Families that talk openly about their plans—whether it’s gifting a down payment, setting up a trust, or planning for taxes—tend to have smoother transitions and fewer surprises. The most effective strategies often include regular family meetings, clear communication, and professional guidance.
On the tax front, California doesn’t have a state inheritance or gift tax, but federal rules still apply. In 2024, estates can transfer up to $13.6 million tax-free, and you can give up to $18,000 per year to each recipient without triggering a gift tax. For larger estates or more complex situations, it’s wise to talk to a tax professional.
Important Disclaimer: We are a boutique collective of top San Francisco real estate agents since 2002. We are NOT tax or legal professionals. Before you make tax and investment decisions, consult with a qualified attorney or accountant.
With that said, if you’re weighing your options as a buyer, our San Francisco homebuyer resources break down just about everything you need to know. Anything else, just ask!
We’ve helped many families navigate the ups and downs of generational wealth transfer. Sometimes it’s a parent helping with a down payment. Other times, it’s a grandparent passing along a cherished family home. Each story is unique, but the common thread in every success is planning and teamwork.
For a closer look at how real people are making these transitions work, browse our San Francisco real estate case studies.
San Francisco’s real estate market is always evolving. The great wealth transfer, the AI boom, and changing buyer preferences are creating new opportunities—and new questions. If you want to stay up to date, subscribe to our newsletter for regular insights, market updates, and tips.
Ready to talk about your next move? If you’re planning to buy, sell, or both, we’d love to help. Reach out to discuss your personal situation, and we can schedule an initial consult to see if we’re a good fit. Click here to contact us today. We look forward to speaking with you!
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