Is Buying a Home in San Mateo County Still Worth It in 2026?
- Joshualee
- Dec 17, 2025
- 4 min read
By Josh Lee | San Mateo Realtor | Real Estate Strategist
DRE #02163289 | Guiding San Mateo County buyers through competitive markets with clear strategies
With fluctuating rates and conflicting headlines everywhere, it’s natural to wonder if buying a home in San Mateo County is still worth it in 2026. Let’s break it down.
San Mateo County remains one of the most desirable and competitive housing markets in the country, with median listing prices around the mid–$1.5M range and many desirable single-family homes selling above that. At the same time, more inventory and slightly longer days on market compared to the recent peak have created pockets of opportunity for prepared buyers.
Why Buying Still Makes Sense for Many Buyers
Even with higher mortgage rates than a few years ago, homeownership can still be a powerful wealth-building tool in San Mateo County if you plan to stay for the medium to long term.
Home prices remain high, but recent data shows more of a gradual reset than a crash, after a peak in 2024.
Owning a home allows you to build equity over time instead of sending money to a landlord, in a county where many homes continue to see strong demand and limited supply.
In markets like San Mateo, historically tight inventory and strong job growth have helped support home values over multiple cycles.
If your time horizon is at least five to seven years, focusing on long-term equity, stability, and lifestyle often matters more than trying to “time” the exact bottom of rates or prices.
The Rate Environment in 2026: What Really Matters
Mortgage rates are higher than the ultra-low levels seen during 2020–2021, but buyers are adjusting to a “new normal.” Recent data shows fixed 30-year rates for well-qualified borrowers in the general area in the mid–5% to 6% range, depending on loan program and lender.
Instead of waiting for the “perfect” rate, many buyers are using a simple approach:
Secure a manageable fixed payment today if the home and location are right.
Plan to refinance in the future if rates improve, while already benefiting from any long-term appreciation.
Focusing on payment comfort, job stability, and your personal timeline is more productive than chasing headlines about small rate movements.
Renting vs. Owning in San Mateo County
Rents in the region are also high, with average monthly rents in the city of San Mateo alone approaching or exceeding the high $2,000s for smaller units and significantly more for larger homes. That means many households are already making a substantial monthly payment with none of it building equity.
If you’re comparing renting versus owning, consider:
How long you plan to stay in the area.
Whether you want the ability to customize and improve your home.
The stability of a fixed mortgage payment compared to rising rents over time.
In a high-demand area like San Mateo County, the decision often comes down to lifestyle, stability, and long-term financial goals rather than finding a “cheap” market.
When It Might Make Sense to Wait
Buying a home in San Mateo County is not the right move for everyone right now. It may be better to wait if:
You are not yet comfortable with the monthly payment that comes with local home prices and current rates.
You plan to move again within a couple of years and can’t spread out your transaction costs.
You still need time to strengthen your savings, credit, or employment history.
In these situations, a clear plan to get “purchase-ready” can be just as valuable as buying immediately.
So, Is It Still Worth It in 2026?
For many buyers who are financially prepared, plan to stay put, and value living in San Mateo County, the answer is still yes. The market has cooled slightly from the fiercest peak but remains fundamentally strong, with solid demand, limited land, and a desirable lifestyle anchored by jobs, schools, and amenities.
The key is going in with a strategy knowing what you can afford, where you’re willing to compromise, and how to position your offer in a competitive environment.
Let’s Talk About Your Next Move in San Mateo County
Whether you’re thinking about buying your first home, upgrading, or just trying to decide if it’s a good time to buy in 2026, having a clear strategy can make all the difference.
💡 Download my FREE “Ultimate Real Estate Success Kit” Your go-to resource for San Mateo County buyers and sellers. This comprehensive guide covers smart strategies for navigating today’s prices, mortgage rates, and local competition.
For personalized guidance like reviewing your budget, exploring neighborhoods, or planning a 6–12 month roadmap reach out anytime:
📧 Email: joshua_lee@kw.com
📱 Phone: (650) 881-2972
🌐 Website: www.joshualeerealtor.com
🎉 Golf Giveaway: Join Me for a Round at Poplar Creek!
As a thank you for being part of my San Mateo community, I’m giving away a round of golf with me at Poplar Creek Golf Course. Whether you’re an experienced golfer or just want a relaxed way to talk real estate, it’s a great chance to connect.
Josh Lee | San Mateo Realtor | Real Estate Strategist
DRE #02163289 Your guide to buying and selling in San Mateo County with confidence.
📞 (650) 881-2972
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