How the Coronavirus will affect Bay Area Housing Market

Mass lay offs are due for Bay Area. Coming results cycle, we all will hear the mass lay offs in Bay Area.

It will a shocking cycle now.

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Do people get paid for Quora answers?
Manch gives me KFC coupons for my answers.
All the chicken I can eat.

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:thinking:
.

Maybe for legacy companies that have been laying off people for the last decade. I doubt growing software companies will do layoffs. They were the least impacted, and some have even seen an increase in business.

As long as qtr2qtr revenue/profit is growing, no CEO/CFO is going to look for cost reduction. This is universal rule. That is the same reason, Cloud companies are not coming down, while others are being corrected.

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I guess this means only white people will take advantage of remote work and leave.

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The largest U.S. cities have seen incredible growth since the 1980s as younger, educated Americans have flocked into revitalized downtowns. But it looks like that trend will reverse in 2020 — with a flight of economic activity out of city centers.

The upside is this will be a boom for suburbs and rural areas.

:slight_smile:

@manch would cite 1980s onwards, 7x7 is the cool place.

20 years of urban cities
20 years of suburbs

Tech’s Embrace of Remote Work Sends San Francisco Rents Plunging

With nothing tethering them to the office, many workers are relocating to Bay Area suburbs or leaving the state altogether.

Take note: Rent of apartments is falling. Not talking about SFHs.

In recent years, San Francisco’s office market set new pricing records as rents soared amid seemingly unstoppable tech demand. But as the coronavirus shuttered most workplaces, new leasing activity plunged to a record low.

Companies signed new leases totaling 266,000 square feet in the second quarter, according to brokerage Cushman & Wakefield, the lowest level based on data going back to the 1990s. The previous low of 556,640 square feet was in the first quarter of 2009 during the Great Recession. The data does not include renewals.

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Looks like practically all companies will allow remote work to majority if employees. Perhaps 90% of workforce would begin to enjoy the perks of remote work and companies will save cost and cities will save on less traffic, commute, traffic jams and pollution.
I really wonder after few months, years, why would anyone pay 4x price and taxes to live in prime bay Area locations anymore unless they want to feel good about living in an expensive house (quite a few folks). You can get equally good schools, neighborhoods, and community and much better homes, and same weather if you just go an hour further. Perhaps we are in the early phase of the cycle of shock, denial, anger, acceptance but eventually it has to be accepted.

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A few places are worth it. Atherton. Hollywood. Palo Alto. You got to rub shoulders with celebrities, founders/ top executives and professors.

For example, @manch.

Save you a clickbait:

According to the May report, the markets most at risk of a decline in home prices are Prescott, Ariz.; Lake Havasu City-Kingman, Ariz.; Naples-Immokalee-Marco Island, Fla.; Crestview-Fort Walton Beach-Destin, Fla.; and Daphne-Fairhope-Foley, Ala.

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