One of the first items to consider when distinguishing between new and existing constructions is energy efficiency. Simply put, newer buildings tend to have insulation, windows, and heating and cooling systems that meet the latest standards, which often results in lower electricity and gas bills compared to older constructions of the same size. This aspect is commonly mentioned in the comparison data between new and existing constructions from nar.realtor and angi.com.

As of August 2026, the average rent in San Francisco is reported to be between $4,315 and $4,495, varying by research agency. Over the past 12 months, the median rent has increased by 23.1 percent, with a 3.9 percent rise in just July. The surge is attributed to the growing demand for jobs in the AI industry, while the supply of new constructions has actually decreased.

Looking at the supply numbers clarifies the reasons further. As of April 2026, there are 74,888 units in the planning stage, but only about 3,300 units are currently under construction. This is a decrease compared to 5 years ago when there were 4,545 units. In the first half of 2026, only 405 new units were completed and ready for occupancy.

In this situation, the term "new construction premium" takes on a slightly different meaning. Due to the limited supply, both new and existing rentals are experiencing rising rents. While it is generally known that new constructions are about 10 to 20 percent more expensive than existing ones on average nationwide, in a market like San Francisco where supply is tight, this gap can widen further.

Nonetheless, the practical advantages of new constructions remain. Thanks to energy efficiency, monthly maintenance costs are lower, and many come with a construction warranty lasting from 1 to 10 years, reducing concerns about plumbing or equipment failures.

On the other hand, existing constructions have the advantages of San Francisco's unique older neighborhoods, established commercial areas, and relatively larger living spaces. However, it is important to keep in mind that as buildings age, the need for major repairs to plumbing and electrical systems may arise.

In terms of climate, San Francisco's cool and humid weather can actually slow down the aging process of buildings. However, older buildings may face issues such as mold or window deterioration due to fog and humidity, so if considering an existing construction, it is advisable to check this aspect.

When looking into school districts preferred by Korean families, it is good to refer to ratings from GreatSchools or Niche, but since school district boundaries change frequently, it is wise to verify the assigned school for the specific address before signing a contract.

Families moving from out of state should also be aware of California's unique property tax structure. Under Proposition 13, the purchase price at the time of buying becomes the basis for property tax, which can only increase by a maximum of 2 percent annually thereafter. Therefore, if a new construction is purchased at the recent price, the tax burden may be significantly higher than that of an owner of an older existing property next door.

The fact that mortgage rates remain high has also contributed to the trend of more households opting to rent rather than buy. Until rates ease, it is worth considering the likelihood of continued strength in the rental market.

For investors looking to generate rental income, it is important to remember that this supply shortage can be a double-edged sword. While the risk of vacancies is low, the purchase prices are already high, leading to a significant initial investment burden, and local rental regulation policies should also be taken into account.

Families moving from out of state should check San Francisco's tenant protection ordinances and rent increase limits in advance. These regulations vary by city, so it is advisable to verify the latest information through the city hall or relevant agencies before signing a contract.

In a market with such a supply shortage, it seems practical to calculate maintenance costs, warranties, and property taxes within the budget for both new and existing constructions.

The prices and data contained in this article are based on the time of research and may change thereafter. It is recommended to consult with a professional before finalizing any contracts.