Why Daly City is the Best Place for First-Time Homebuyers in 2026
Daly City is quickly becoming a top choice for first-time homebuyers in 2026. With its relative affordability compared to neighboring San Francisco, robust transportation links, and diverse community, Daly City offers a unique opportunity for buyers looking to enter the competitive Bay Area housing market. As the region’s housing market stabilizes, Daly City presents a promising option for those seeking accessibility, community, and value.
Key Advantages for First-Time Buyers
1. Relative Affordability
While Daly City remains expensive compared to the national average, it is significantly more affordable than neighboring San Francisco, with housing costs potentially up to 42% lower. This affordability gap makes Daly City a feasible option for first-time buyers looking to enter the Bay Area real estate market without breaking the bank.
2. Strategic Location and Transit
Daly City is known as the "Gateway to the Peninsula", offering exceptional access to major highways like I-280 and US-101. It’s also served by two BART stations, making commuting to San Francisco and the South Bay easy and convenient. This strategic location allows residents to easily access major job centers in the Bay Area, enhancing Daly City’s appeal for both homebuyers and renters.
3. Diverse Housing Stock
Daly City offers a variety of housing options to suit different lifestyles and budgets. From iconic mid-century single-family homes in neighborhoods like Westlake to modern condos and townhouses in areas like Serramonte, Daly City’s housing stock provides options for both new homebuyers and those looking for low-maintenance living. The city's diversity in housing types makes it a great place for individuals, families, and investors alike.
4. Community and Amenities
Daly City is home to a vibrant community, with a rich Filipino-American cultural heritage that adds to its charm. The city offers excellent local schools, numerous parks, trails, and shopping centers such as Serramonte Center and Westlake Shopping Center. There’s also a wide variety of restaurants and dining options, creating a well-rounded environment for residents to enjoy. This diversity and abundance of amenities make Daly City a great place to live and raise a family.
2026 Market Conditions and Opportunities
1. Stable Prices and Improved Affordability
The Bay Area housing market in 2026 is expected to be more balanced, which may favor buyers. Home prices are projected to stabilize, with only modest national growth of around 0.5%. Wage growth is also anticipated to outpace property values, gently improving affordability for first-time buyers. This creates an opportunity for buyers to enter the market with more manageable price points compared to previous years.
2. Increased Inventory
A growth in housing inventory is expected in 2026, providing more options for buyers and potentially giving them more negotiating power. This shift represents a departure from the intense competition and limited inventory that characterized previous years, which made it challenging for first-time buyers to secure a home.
3. Down Payment Assistance Programs
For first-time buyers, several down payment assistance programs can significantly reduce initial costs. Programs like California Dream For All (returning in 2026) and HEART of San Mateo County offer valuable resources for buyers who need help with down payments. These programs can provide a crucial financial cushion, making homeownership more accessible.
Considerations
1. Cost of Living
Despite being more affordable than San Francisco, the overall cost of living in Daly City remains high compared to the national average. Buyers should account for the higher cost of goods, services, and general expenses when budgeting for life in Daly City.
2. Local Microclimates
Daly City experiences a varied climate, with some neighborhoods being significantly foggier than others, especially those closer to the coast. Buyers should research local microclimates when selecting a neighborhood to ensure they are comfortable with the weather patterns.
3. School Ratings
While schools in Daly City are generally well-regarded, it’s essential for prospective buyers with children to research specific school ratings within their target neighborhoods. The quality of schools can vary across different districts, so ensuring access to top-rated schools is crucial for families.
Key Takeaway
Daly City presents a unique opportunity for first-time homebuyers in 2026. With its affordability compared to San Francisco, excellent transit access, and diverse community, Daly City offers a balanced mix of convenience, culture, and value. The stable market conditions in 2026, coupled with assistance programs and increased housing inventory, make it a promising location for those looking to step into the Bay Area real estate market. While challenges such as high living costs and varied microclimates exist, Daly City remains one of the best options for buyers seeking a foothold in this competitive market.