What’s going to happen to housing in the San Francisco Peninsula area?
It’s that time of year where everyone is wondering what’s to come in the next chapter—especially for those who are considering investing in real estate, or those who have already done so. This means that you’re already a step ahead of the curve! While no one is absolutely, positively sure of what’s ahead, here’s what real estate professionals and financial experts have to say about SF peninsula real estate in 2020.
New Wave of Tech Companies to Impact Market
Many in the San Francisco Bay Area are getting excited for the new tech IPOs who are coming or have already come to town, such as Uber, Lyft, Airbnb, Slack, Pinterest, and more. These organizations are worth millions and will be employing plenty of people with families who are ready to settle down. So what does this all mean for the area? With this wave of new companies, most would make the assumption that this will drive up real estate prices in the surrounding areas because of enormous demand. While some say that this will cause prices to hike up, others predict that the impact is being overestimated. Either way, we’ll most likely see some shift in the market. Sam of Financial Samurai talks all about it on his blog.
Renting Will Continue
According to ManageCasa, in 2019 San Francisco County saw the biggest change in home sales out of every city in California. The Golden State has been ranked as one of the world’s largest economies, with a record number of residents earning rising wages. While some high-earners can afford homes, don’t expect sales to completely boom just yet.
With lofty real estate prices and more jobs opening up to younger people who are not yet completely financially established, first-time home-buyers are struggling to come up with the down payment for a house or commit to hefty mortgage payments. With that, renting will continue.
More Multi-Family Construction
With all that being said, there will likely be a surge in multi-family housing units that are geared toward renting. A younger population that has come to San Francisco for high-paying jobs in the tech industry is more likely to reside in multi-family structures—so that’s what the city will build.
Multi-family construction statistics have swung unpredictably from year to year, but the general trend has been upwards since 2010 and could continue into 2020.
Are You In San Francisco?
Searching for more activities, events, and fun things to do in the SF Peninsula? Feel free to read our other blog posts. If you’re hoping to make the move to San Francisco, contact us today. We would love to assist you in finding Belmont and Redwood City homes for sale, San Carlos homes for sale, houses for sale in Millbrae, San Mateo real estate, and other properties in the SF mid-peninsula area. Happy New Year!