Another ad. An inflatable bed in the living room for $500 a month. Also Cupertino.
South Bay is too cheap for rent to price ratio.
This bedroom in Daly City would go for least least 900 - 1000.
What’s the exact reason for the extreme low rental yield in South Bay? Is it because South Bay is extremely wealthy so it becomes very hard to find tenant?
Another reason could be that housing shortage is less severe in South Bay.
Home ownership rate in Santa Clara County is 58%. There’s more home owners than renters. I’m sure a lot is age demographics too. Lots of young and single people live in SF. Those people tend to rent. Once people get married and have kids, they leave SF to buy a home. People in South Bay are older and more likely to be married with kids which is when most people buy.
Does this suggest that South Bay should be avoided by real estate investors?
Appreciation is higher, no?
I don’t see why you’d avoid anywhere where there are tech jobs right now.
Not sure if that’s still true. It has been true for many years but tech center is moving north
Friend just bought a house in San Jose this summer. Their experience was multiple bidders, and the seller pitting the bidders against each other. Sounds like the market is pretty hot right now. He works mid-pen but that was the next affordable area.
I think main reason is good school district areas in South Bay appeal to tech workers with kids and these folks are at a stage in their career where they can buy rather than rent. Younger tech workers who can’t buy yet prefer living in ‘the city’ or peninsula closer to Palo Alto and MV DTs.
Have you seen how sleepy Santa Clara, Cupertino and Sunnyvale are? They are good for families, but not for younger workers.
This makes South Bay a risky investment. If tech jobs moves to the city and mid peninsula, South Bay would be in big trouble. I’m pretty skeptical of South Bay when people are paying top dollars to buy when rent is so low. That’s a price bubble by definition.
moving google or apply to city would be a very painful thing to do.
however, it’s not hard to imagine new companies popping up in unclaimed cities.
Like Google->MTV, Facebook->MP, Apple->Cupertino.
This leaves some cities up north - RWC, SC,etc.
Oracle - RWC
Genetech - SSF
GILEAD - FC
Salesforce - SF
Uber - SF
Airbnb - SF
Almost all the hot startups are now in SF. That’s why I am a little bearish on South Bay for the log run. Which noteworthy company after FB?
When you grow beyond a certain size, you move south
Only south can handle google scale.
We have a revival of hardware companies because of AI, and they are all in South Bay.
Yeah, hardware is doing well now. But generally old industry and old people in south bay is not a good sign over the long run. In the next 10 years, may still be fine.
Uber and Airbnb are not moving anywhere, they’ll stay in SF, just like Salesforce. It’s rare for a big company to move far. Uber is already very big.
uber i thought was expanding in oakland. airbnb will have hard time imho.
plenty of startups still happen in the valley.
Uber has given up on Oakland and will only expand in SF. It never considered South Bay.
Why are you bearish in Airbnb?
dunno, doesn’t sound super hard to displace them - they don’t even own an ip.
Creating a platform that can help landlords do things like cleaning, maintenance, and rentals don’t sound hard for entrepreneurs to do
No one wants to raise kids in SF. It has the lowest percent of kids of any big city in America. All the young employees will move out of SF once they get married and have kids.