Foster City

Foster City did not exist until 1964. It was built on Brewer Island in the marshes of San Francisco Bay, enlarged with engineered fill, and laid out around a 218-acre man-made lagoon system. Every square foot of it was designed on purpose, which is why it feels different from every other Peninsula city — and why the two things that matter most here are things you will not find on a listing: the levee that surrounds it, and the bond assessment on the tax bill that paid to rebuild it.

The Foster City market at a glance

The number to notice is that third one. Roughly 82% of Foster City homes now sell above asking — up from about 50% a year earlier. That is the sharpest competitive swing of any market I track. The average sale closes near 106% of list, homes go pending in about nine days, and inventory sits around 1.2 months.

Prices themselves have been flat year over year, around $1.70 million. So the story here is not appreciation — it is that the same price point has become substantially harder to win in the space of twelve months.

The levee, Measure P, and your tax bill

This is the section that matters most, and almost no listing will explain it to you.

Foster City sits below sea level in places, behind a levee. In 2014, FEMA determined that the existing levee system did not meet minimum flood protection requirements. Without a fix, the city faced a FEMA flood zone designation that would have required property owners with federally backed mortgages to carry mandatory flood insurance — the city estimated $2,000 to $3,000 a year per household.

Foster City voters approved Measure P in June 2018 with nearly 81% support — a $90 million general obligation bond to rebuild the levee. The Levee Improvements Project was completed in February 2024: 6.5 miles of levee raised roughly six feet, built in three different forms — earthen levee, hybrid sheet pile, and concrete floodwall — with design allowances for future sea level rise. The city submitted the completed work for FEMA accreditation.

Living on the water

The lagoon is what people buy here for. It runs to 218 acres, entirely man-made, originally engineered for drainage on low-lying land and now the recreational spine of the city. A meaningful share of Foster City homes back directly onto it, many with private docks.

Lagoon-front homes carry a substantial premium, and it holds up well on resale — the supply is fixed and cannot expand. Two things buyers are often surprised by:

• Only electric, wind, or human-powered watercraft are permitted on the lagoon. No gas motors. If your picture of waterfront living involves a powerboat, this is not that. Kayaks, paddleboards, small sailboats, and electric launches are the reality.
• The lagoon is enclosed. It does not connect to the Bay for navigation. You are buying calm protected water and a view, not access to open water.

Neither is a drawback — the lagoon is genuinely lovely and unusually quiet — but they are worth knowing before you pay the frontage premium.

The city's layout

Schools — and the one thing every parent should know

Kindergarten through eighth grade is handled by the San Mateo-Foster City School District, the same district that serves San Mateo.

Then here is the wrinkle: there is no high school located in Foster City. There is no high school anywhere east of Highway 101 in this part of the county. Foster City students attend schools in the San Mateo Union High School District, which means every teenager in the city commutes across 101 to San Mateo or a neighboring city each morning, or attends private school.

That is not a knock on the schools — San Mateo Union is a well-regarded district. But it is a daily logistical fact that shapes family life here for six years, and buyers with young children consistently discover it late. Confirm the specific high school assignment for your address with the district before you write.

Jobs — and a company larger than you would expect

Gilead Sciences is headquartered in Foster City and employs roughly 6,714 people here. In a city of about 33,800 residents, that is a striking ratio — a single biotech company with a headcount equal to a fifth of the city's population.

Visa maintains a major Foster City presence at around 2,879 employees, and Zoox, the autonomous vehicle company, employs roughly 1,401. Between them, three companies account for well over 10,000 jobs inside the city limits.

For a buyer, the read is straightforward: an unusually large share of Foster City demand comes from people who work a few minutes from where they live, which is rare on the Peninsula and helps explain why the market tightened so sharply this year.

Commuting and getting around

The honest headline: Foster City has no Caltrain station. The nearest are Hillsdale and Belmont, both a drive away. If train access to San Francisco is central to your life, this is the significant trade-off, and it is the main reason some buyers choose San Mateo or Redwood City instead.

By car it is well positioned. Highway 101 runs along the western edge and Highway 92 crosses the city and continues over the San Mateo Bridge to Hayward and the East Bay — which makes Foster City one of the better Peninsula bases for a household commuting in two directions. SFO is about fifteen minutes north. Within the city, the lagoon paths and bike network are genuinely usable, and a lot of people do get around locally without a car.

What buyers get wrong in Foster City

• Not asking about the Measure P assessment. Roughly $560 to $610 a year on a $1.7 million assessment, running for three decades. It is on the tax bill, not the listing.
• Assuming the flood question is settled. The levee is rebuilt and submitted for FEMA accreditation. Get the current designation and an actual insurance quote for the specific address — do not rely on what a neighbor or a listing agent tells you.
• Expecting to buy at list. Four out of five homes now sell above asking, up from half a year ago. Budget accordingly.
• Picturing the wrong kind of waterfront. The lagoon is enclosed and permits only electric, wind, or human-powered craft. No powerboats, no Bay access.
• Missing the high school commute. There is no high school in the city. Every Foster City teenager crosses 101 daily.
• Skimming HOA documents on attached housing. Much of the entry-level market is condo and townhome. Reserves, assessment history, and current dues belong in your review, and you get a short window to do it.

Common questions