Foster City's housing stock is the product of its 1970s-era master planning. The city is built around its lagoons, with single-family homes, townhomes, and condominiums arranged in cohesive residential neighborhoods, many with waterfront or water-view settings. Housing ranges from original mid-century planned-unit homes to newer townhome and apartment development near the city center and Metro Center area. The lagoon frontage is a defining premium, with many properties having direct water access. The market is predominantly single-family and owner-occupied, family-oriented, and consistently in demand, reflecting the city's schools and mid-Peninsula location.

Foster City is organized around its lagoon system, with residential neighborhoods distributed across the man-made waterways. The central district, near Leo J. Ryan Park and the civic center, anchors community life, while the Metro Center and its office and retail cluster sit along the city's commercial spine. Neighborhoods fan out toward the bayfront and the San Mateo-Hayward Bridge approach, with the Bay Trail along the shoreline. The city's planned layout gives it a uniform, walkable structure—an uncommon quality for a Bay Area suburb—with homes, schools, and parks connected by trails and lagoon crossings.

Foster City offers a family-oriented, amenity-rich suburban lifestyle with an unusual waterfront character. Residents use the lagoons for kayaking, paddleboarding, and casual boating, and the city's parks, trails, and Bay Trail access encourage an active, outdoor culture. The community is known for its strong schools, well-maintained public spaces, and sense of safety. Dining and shopping cluster around the city center and nearby San Mateo, while the mid-Peninsula and Silicon Valley provide employment and cultural options. It appeals to families and professionals seeking planned, low-stress living between San Francisco and San Jose.

Foster City is served by the San Mateo-Foster City School District for kindergarten through eighth grade and the San Mateo Union High School District for grades nine through twelve. The districts are regarded as a key draw for families, with neighborhood elementary and middle schools across the city and high school assignment to San Mateo Union campuses. The school district's offices are based in Foster City, underscoring the city's central role in the regional system. Private and parochial options in the mid-Peninsula add further choice. The combination of strong public schools and a family-focused layout is central to the city's identity.

Foster City sits at a regional crossroads. State Route 92 runs through the city and over the San Mateo-Hayward Bridge to the East Bay, while U.S. Route 101 passes just west, connecting San Francisco and Silicon Valley. San Francisco International Airport is a short drive north, and Caltrain service is available in nearby San Mateo and Hillsdale. The city's internal street grid and lagoon bridges make local travel straightforward, and commuters reach major Peninsula employment centers within minutes. The bridge's East Bay connection distinguishes Foster City from many Peninsula cities, offering two-sided regional access.

Recreation in Foster City is centered on the lagoons and the bayfront. Residents kayak, paddleboard, and boat within the city's waterways, and Leo J. Ryan Park, the city's central waterfront park, offers open space, paths, and community events. The San Francisco Bay Trail runs along the shoreline for walking and cycling, and the city maintains extensive parks and athletic fields. Organized youth sports are a major part of community life. Nearby, the Coyote Point Recreation Area and the hills of the Peninsula offer additional outdoor options, while the Bay itself supports sailing and windsurfing.