doctorhousingbubble.com / February 22nd, 2017
San Francisco tends to put Southern California to shame when it comes to real estate mania. The tech driven frenzy in the Bay Area is something to behold. What is so interesting is that San Francisco, being the hippie and alt-culture hub back in the baby boomers heyday, is now fully gentrified by tech and investor owners that really have little to do with the hippie and art subculture of the area. I mean how many hippies can afford a $1.3 million crap shack? The Bay Area continues to defy gravity when it comes to prices. People are having to “drive to qualify” if they aren’t the DINK tech couples or investors with large pockets. Of course by definition the ultra-wealthy are a small part of the market but with few properties for sale, if they have a desire to buy they are going to buy. This is why you hear of stories of Google employees living out of vans even though they make what most would view as a fantastic salary. San Francisco continues to march on a unique path.
San Francisco breaks through a new peak
San Francisco real estate has been as hot as the NASDAQ. There is an allure to being part of the new tech-uber wealthy class. Wearable tech, top of the line phones, cars that drive for you even when you are half awake. So it is interesting for a region so self-aware that they are more than happy to purchase $1.3 million crap shacks. Many younger tech workers are not falling for this and that is why the homeownership rate in San Francisco is among the lowest in the nation. Short of you wanting to mortgage your life away writing code for a company that might be out of fashion in two years, you need to be nimble and flexible with your ability to learn.