San Francisco's cheapest single-family home will sell for over $500,000 -- and it reveals how bad the housing crisis has become

San Francisco ranks as the most unaffordable city in the United States. The median price for a one-bedroom home is around $820,000.

By comparison, the half-million asking price of the city's least-expensive single-family home on the market is a steal — or as Rick Smith, the real estate agent behind the listing calls it, "a joke."

The decrepit house is a classic example of San Francisco's housing crisis, which has accelerated in the last few years.

He has received 12 offers over $520,000 for the home, which was awarded to one lucky bidder on Wednesday.

San Francisco's cheapest home
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San Francisco's cheapest home

The home (which resembles more of a shed than a house) sits in Visitacion Valley, an outer neighborhood of San Francisco. Here's the view from the backyard: 

In total, Smith received 23 offers, but only 12 were over $520,000. The bidders are all house-flippers, investors, or contractors who may want to capitalize on San Francisco's hot housing market.

"When you have a property that's below a million [dollars in San Francisco], it's a steal," Smith told Business Insider. "If it's close to $500,000, it's a joke."

Photo credit: MLS

The inside is not as pretty. 

Photo credit: MLS

The former owner died in 2017. The heirs paid $2,500 in trash removal before the home went on the market. 

Photo credit: MLS

None of the appliances work and the plumbing is not functional, Smith said. 

Photo credit: MLS

Mold speckles the ceiling. 

Photo credit: MLS

And for some reason, there are a bunch of mattresses in the kitchen. 

Photo credit: MLS

The home's listing calls it a "developer, contractor, or flipper property," since lenders have designated it as "inhabitable" (i.e. they won't provide a mortgage loan until the new owner makes repairs). 

Photo credit: MLS

According to the listing, the house spans 1,085 square feet, though Smith said it's actually smaller than that. 

Photo credit: MLS

Smith doesn't think that the winning bidder will bulldoze the house, since there are properties inches beside it. He predicts that they will rehab the interior and build a second story — renovations that will be subject to city code. 

Photo credit: MLS

In the neighborhood, there are a few homes going for at least $1 million. Smith said he recently sold a similarly sized house two blocks away (from the same estate) for over $800,000. That one was in good shape. 

For perspective, the nation's median home price is $335,400 as of December 2017, according to the US Census Bureau. 

Photo credit: Getty

The $500,000 house, spotted by The San Francisco Chronicle, is a poster child for San Francisco's housing crisis. 

Photo credit: Getty

In the past decade, the city's housing stock has struggled to keep up with demand, causing home prices to skyrocket. 

Photo credit: Getty

Smith, who has worked as a broker in northern California for 33 years, is not surprised that the home will close for at least $520,000. "This is 'affordable housing' in San Francisco," he said. "It's not for the faint-of-heart or the faint-of-pocketbook."

Photo credit: MLS


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SEE ALSO: South Korea is building a $35 billion city designed to eliminate the need for cars

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