San Francisco’s Economic Recovery Gains Momentum After Pandemic Challenges
San Francisco is beginning to emerge from years of economic uncertainty and urban challenges, signaling the start of a meaningful recovery after the turmoil caused by the pandemic and other issues. A combination of increased foot traffic, improved office attendance, rising new housing permits, and a gradual uptick in tourism is helping the city regain its footing as a vibrant economic and cultural hub.
Signs of Economic Revival Throughout 2025
Recent data points to positive trends, especially in San Francisco’s downtown area, which had been hit hardest during the pandemic. Foot traffic in downtown has climbed to about 70% of pre-pandemic levels, marking a steady rebound, while employee presence in offices has improved to approximately 52% of what it was before COVID-19 disruptions began. New housing permits show an upward trajectory, reflecting renewed investment in residential growth within the city.
Public transit ridership is also gaining momentum. Muni Metro ridership reached roughly 60% of past averages by early 2025, and Bay Area Rapid Transit (BART) station exits downtown are increasing, though still below historic levels. Local restaurants and bars are showing signs of vitality, with around 120 new establishments opening just in March 2025 alone, bolstering the city’s food and beverage scene.
Tourism and Hospitality Industry Slowly Recuperating
The hotel market, long depressed due to pandemic-related travel restrictions and shifts in visitor patterns, has started to register meaningful improvements. San Francisco’s hotels experienced increased occupancy, higher average rates, and revenue growth during the first eight months of 2025. Notably, large conventions such as the Dreamforce event have significantly contributed over $150 million to the local economy, revitalizing the tourism sector.
Looking ahead, high-profile events like the 2026 Super Bowl and six matches of the 2026 FIFA World Cup, both slated to take place in the Bay Area, are expected to continue fueling this recovery by bringing a surge in visitors and filling hotels.
Despite these gains, experts caution that San Francisco’s hotel market remains one of the slowest to recover among major U.S. cities, due partly to ongoing reputational challenges related to concerns about crime and urban cleanliness, which still affect visitor perceptions.
Local Government Initiatives to Accelerate Revival
San Francisco’s city government has launched several initiatives to transform momentum into sustained growth. Mayor Daniel Lurie’s “Heart of the City” executive directive aims to strengthen the downtown core by prioritizing safety, cleanliness, and support for small businesses. The city is actively working to reduce bureaucratic barriers through reforms such as the PermitSF initiative, simplifying the process for businesses to open and expand.
The city is also enhancing public spaces and activating streets with new parks and entertainment zones, encouraging residents and visitors to engage more with urban life. This coordinated approach is designed to entice workers, residents, and tourists back downtown, fostering a livelier and economically vibrant environment.
Mixed Neighborhood-Level Performance
While the overall outlook is improving, recovery is uneven across neighborhoods. Areas like Mission Bay and Mission Rock have seen notable surges in sales tax revenue — up by 31% and driven by large-scale development projects and new office leases. Other neighborhoods on the west side of San Francisco, including the Inner Sunset and Inner Richmond, report moderate gains attributed to loyal local shoppers and events that draw visitors.
However, many parts of the city still trail behind pre-pandemic spending benchmarks, and retail sales tax data reflect a cautious recovery with some areas continuing to struggle.
Outlook: Recovery is Real but Incomplete
San Francisco’s return from its economic downturn is tangible but still a work in progress. Improvements in public safety, increased commercial leasing, and a steady rise in consumer activity provide cause for cautious optimism. Yet, challenges remain in bringing office attendance and visitor numbers back to pre-pandemic levels.
Experts and city officials emphasize the importance of sustained investment in transit, infrastructure, and a supportive policy environment to fully realize the city’s comeback. With several major global sporting events on the horizon and ongoing local reforms, San Francisco is poised to write a new chapter in its economic story.