Condo vs. TIC prices in San Francisco: a narrower gap, with financing in focus

2026 YTD TIC gap in median $/sq ft

3.6%

Citywide MLS: $1,083 TIC vs. $1,124 condo [M]

2026 YTD TIC gap in median price

2.5%

$1.243M TIC vs. $1.275M condo; different homes [M]

2026 YTD TIC sales

234

Compared with 1,817 condo sales through Oct. 22 [M]

Data: MLS sales through October 22, 2026, extracted October 23. Earlier years are full calendar years; 2026 is January 1–October 22. RCU issuer figures retain their separate stated periods.

Are TICs cheaper than condos in San Francisco?

TICs can offer a lower purchase price than comparable condominiums. Better access to individual TIC mortgages gives buyers a reason to reconsider how much of a discount they require. The financing hurdle has changed, even though the ownership structure has not. The useful question is how much of a particular price gap reflects financing, and how much reflects the home and the building.

Our view: workable individual mortgages can reduce a financing-related barrier for TIC buyers. The MLS aggregates below show a narrower condo–TIC price gap at the end of the series. They do not establish that financing caused that movement or measure a matched-property discount. [M]

What the citywide MLS price series shows

In the citywide SFAR MLS aggregates, the TIC gap in median price per square foot was 6.7% in 2023, 7.7% in 2024, 6.9% in 2025, and 3.6% in 2026 YTD. The 2026 YTD medians are $1,083 per square foot for TICs and $1,124 for condos. The median purchase-price gap is 2.5%, based on $1,243,000 for TICs and $1,275,000 for condos. The year-to-date samples contain 234 TIC sales and 1,817 condo sales. [M]

The aggregate gap is narrower at the end of this series, but the path is not a steady annual decline. Different neighborhoods, home sizes, condition, parking and sale mixes can move both medians. These figures do not show what the same flat would have sold for under each ownership structure. They also differ from RCU’s selected-neighborhood snapshot, which uses a different sample and does not disclose the matching details. [1, M]

What individual TIC financing changed

Historically, TIC buyers often shared a single mortgage secured by the entire building. That exposed each owner to other owners’ mortgage-payment risk. Individual fractional financing instead gives each borrower a separate obligation secured against that borrower’s undivided interest. SirkinLaw explains that a foreclosure on that loan reaches the defaulting owner’s share. It does not transform the interest into a condominium. [2]

The pricing mechanism is straightforward. A buyer who cannot obtain suitable financing cannot bid on the same terms as a buyer who can. When a workable individual loan becomes available, that obstacle can shrink. More qualified buyers may consider the property, and some may accept a smaller discount. This is a reason financing improvements can support TIC values, rather than a guarantee that every TIC appreciates or reaches condo pricing.

Redwood Credit Union shows growing use of TIC loans

Dedicated financing is available today. Redwood Credit Union advertises a TIC program with a 20% down payment and loans up to $2 million. Eligibility, property approval, and the actual loan terms still require lender review. These are published program parameters, not a rate quote. [3]

Growing loan activity is consistent with more buyers using TIC financing. It does not isolate easier underwriting, lower rates, or financing availability as the cause. More originations could also reflect buyer demand, property supply, larger loans, or RCU gaining market share.

Why a TIC discount can still make sense

A TIC is an undivided interest in a property, with occupancy rights defined through the co-ownership agreement. Individual financing does not create a separate condominium unit. [2] That difference deserves attention even when the homes look identical.

SirkinLaw’s 2023 comparison identifies lender choice, tax-bill allocation, and transfer documentation as differences between the structures. Its financing discussion also notes potential differences in rates, down payments, and underwriting. [4] Use current written quotes to evaluate today’s terms rather than treating an older article as a current rate sheet.

• Financing fit: compare interest rate, APR, points, amortization, adjustment provisions, and cash required to close for the actual properties.
• Building finances: read budgets, reserves, insurance, maintenance history, and planned capital work for both homes.
• Agreement and operations: have the occupancy rights, expense allocation, decision rules, transfer process, and dispute provisions reviewed.
• Future resale: consider the pool of buyers who could finance this specific interest, without assuming today’s loan products will always be available.

How to compare a condo and a TIC fairly

Start with homes a buyer would realistically substitute for one another. Compare similar locations, bedroom counts, usable layouts, condition, parking, light, and outdoor space. Then separate the physical-property adjustments from the ownership and financing adjustments. A cheaper home with deferred work is a different question from an otherwise comparable home priced lower because of its ownership structure.

1. Build a recent closed-sale comparison set and identify TIC versus condo status for each record.
2. Check square-footage sources and flag differences in measurement or unpermitted space.
3. Obtain written financing estimates for each candidate using the same borrower profile and quote date.
4. Compare upfront cash and total monthly costs, including principal and interest, taxes, insurance, shared expenses, and anticipated maintenance.
5. Review the ownership documents and building records before treating the remaining price difference as a bargain.

What this means for buyers and sellers

For buyers, better financing makes a TIC worth evaluating alongside condos when the building, agreement, and budget fit the plan. The goal is to understand what the discount compensates you for. Avoid underwriting a purchase on the assumption that it will later convert to a condo.

For sellers, make the financing path concrete before choosing an asking price. An organized agreement, current financial records, and early lender review give buyers better information. Price against relevant closed sales and the actual terms available to prospective buyers, rather than applying a fixed discount to every condo comparable.