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July 11, 2025

State of the 3+ Unit TIC Market: Mid-2025

930 Scott

Buyers continued to gravitate toward tenancy-in-common (TIC) units in the first half of 2025 as an affordable way to get more space in prime San Francisco neighborhoods. And with a growing number of lenders now offering TIC loans, buyers have expanded financing options.

TICs in 3+ unit buildings made up a relatively small share of the market. Only 97 TICs in 3+ unit buildings sold, at a median price of $935,000 (January-June 2025). By contrast, 813 condos in similarly sized buildings changed hands during that same period, with a higher median price of $1,025,000.

(I distinguish between TICs in 3+ unit buildings because it’s not possible to condo convert them under current rules.  However, you can still condo convert TICs in two-unit buildings. This means the latter type of TICs hold values that are closer to condos.)

TICs were most popular in high-demand neighborhoods where condos tend to be significantly pricier, like Noe/Eureka Valleys, Russian/Nob Hills, Mission Dolores and Alamo Square.

Only 18 TICs sold for $1.5M or more, with the most expensive being the 3BR/2.5BA home in a modernized three-unit building at 1465 Masonic #2 in Ashbury Heights that closed for $2,550,000.

But the sweet spot for TIC buyers continues to be the $1M or under segment; more than half of all TIC sales fell into this price range.

Here’s a quick look at how the one-, two- and three-bedroom TIC markets performed over the past six months:

1BRs
# sold: 19
Median price: $790,000
Avge days on market (DOM): 61

2BRs
# sold: 40
Median price: $930,000
Avge DOM: 34

3BRs
# sold: 28
Median price: $1,525,000
Avge DOM: 44

TIC loans are done through fractional financing, most of which are adjustable-rate loans (ARMs).  Interest rates are currently in the 6% – 7% range for an 80% loan to value.  Lenders offering TIC loans include NCB, Meriwest, Bank of Marin, Bank of San Francisco, Redwood and Patelco Credit Unions. There are 30-year fixed TIC loans available, but they aren’t as popular as the adjustable-rate ones.

[All data pulled from the San Francisco Multiple Listing Service for TICs in 3+-unit buildings sold from January-June 2025.]

 

 

 

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