The 94131 zip code of San Francisco, CA has a median home value of $1,073,000. The median home value in this zip code is higher than the national median home value of $177,500. This high median home value is likely due to the high demand for housing in San Francisco and the surrounding Bay Area. Additionally, many homes in this zip code are located in desirable neighborhoods such as Pacific Heights and Nob Hill. Home equity is an important factor when considering purchasing a home. Home equity is the difference between the market value of a house and what a homeowner owes on their mortgage or loan. In general, homeowners who have more equity in their homes are more likely to be able to afford a larger down payment and/or take longer to pay off their mortgage than homeowners who have less equity in their homes. According to Zillow’s 2018 Home Value Index report, the 94131 zip code has one of the highest levels of home equity among all U.S. zip codes with over 50,000 residents. The index measures how much money homeowners have left after paying down debt and other expenses related to owning a house (such as property taxes). The 94131 zip code ranks #2 out of all U.S. zip codes with over 50,000 residents with an average level of home equity of $269,700 (Zillow 2018). This indicates that many homeowners in this area have enough money saved up so that they do not need to borrow money from lenders to purchase a house outright or use other forms of financing such as mortgages or HELOCs (home improvement loans). Another indicator that shows how well-off homeowners are in this area is the percentage of owner-occupied homes compared to renter-occupied homes. According to Zillow’s 2018 Rent Index report, approximately 54%of properties within this zip code are owner-occupied while 46%are rented (Zillow 2018). This indicates that there is strong demand for housing within this area and that most people who live here own their own homes rather than rent them from someone else