You’ve heard how expensive San Francisco has gotten. You’ve heard people are leaving. You’ve heard houses go quickly. But why?
Let’s dive into what has changed here in the bay area in the last year and how those changes have affected our housing market.
In January, the general opinion was that buyers would shy away from San Francisco real estate since many of the tax advantages of owning were taken away with the new tax bill. This assumption was completely thrown out the window in the first quarter of 2018. Buyers came out of the woodwork and they have been aggressive, at all price levels, but particularly in the $1 million – $2 million range. Prices have appreciated by double digits this year. This is true for houses and condos and for all parts of the Bay Area.
The Bay Area has a fundamental problem that will become more pronounced in the next decade – for every 10 jobs created in the Bay Area, only 4 housing units are added. In addition, Bay Area infrastructure and public transportation is shabby. There simply is not enough housing and this must change. I expect we will start to see some innovative proposals from the companies that are having trouble hiring talent. These companies have the resources and the clout to change the situation.
Next week’s “Bits by Bethany”:
Is San Francisco’s Tech Innovation Impacting Our Market?