Tech market in San Francisco has far-reaching effects
The homes for sale in the Bay Area are lauded for their location in one of the best tech markets in the world. IT professionals, software programmers and network engineers all regularly flock to San Francisco to work for companies like Facebook, Microsoft and more.
However, the burgeoning technological field is having a larger effect than many people anticipated - some areas not even remotely tied to tech have been affected, one of them being the local housing market.
"What do you do as more younger, wealthier people move in to be part of the in-city tech boom?" asked economist John Silvia, according to the San Francisco Examiner. "What happens to middle-income people or families in terms of pricing?"
The answer is simple - prices go up. Rental prices are normally the first to increase due to new workers seeking temporary housing, but as permanent employees arrive, they begin to snap up homes in a metro area. In San Francisco, demand might soon outweigh supply, as the source reported that the average income in the city was $71,000 - more than enough to make a down payment on a single-family home. However, this might drive less-affluent people to the suburbs.
Mayor Ed Lee acknowledged this, stating, "Housing is expensive and I want people to live here - I want them to play here as well as work here - and we can only do that if we have enough housing for different economic levels."
Corporate real estate
While residential home pricing affects people on a personal scale, the tech market is also having a profound impact on the corporate sector. This is especially relevant for small business owners who may be seeking to purchase their first office space.
The San Francisco Business Times reported that much of the premier office space in San Francisco is vacant due to high lease prices. Because so many tech companies are relocating to the Bay Area, the average price per square foot has skyrocketed, which means that many businesses are scrambling to find cheaper alternatives.
If you are a small business owner looking to avoid high rent, it might be prudent to purchase one of the houses for sale in the Bay Area - if the price is right, you could even convert some of the property into a home office to save commuting time and operational costs.