San Francisco is well-known as a city with an affordability issue. Indeed, the real estate crisis is about to get a lot worse. Read on for more information.
San Francisco Companies Going Public
Tech companies based in San Francisco are planning to go public with their stock. These companies include Lyft, Uber, Airbnb, Slack, and Pinterest. Even more, going public with the stock will result in a lot of paper millionaires who already live and work in the city. Additionally, San Francisco residents are likely to hold onto their homes until after the companies have gone public. As more wealthy people look for an apartment or home, homes will sell at new market prices. With the demand for real estate already climbing from last year, it will definitely be a seller’s market.
City Life Is More Convenient
Employees of these tech companies prefer the convenience of the city. Certainly, reduced commuting times, the ability to get by without a car, and grocery deliveries are all reasons why people want to live in the city. As a result, housing and real estate prices continue to skyrocket, making even a studio apartment hard to find. Thus, those who have families or who want to have families will need to carefully consider prices. Within the next five years, it might become impossible to find a basic apartment for less than $1 million.
Real Estate Is at a Premium
San Francisco has a population of over 880,000, and it is only 46.87 square miles. Certainly, real estate prices will reflect this. Considering all of the people who need to live in San Francisco, the city might have to think about renovating. It will need to find some balance; at the rate that things are currently going, essential workers such as janitors and city employees will not be able to afford living there.