Average SF Millennial Must Save Until 2044 To Buy Home

According to a study by Apartment List, twenty- and thirty-somethings in San Francisco will have to spend nearly 28 years saving up for a down payment on their first home, which is longer than most of them have been alive.

Sourced through Scoop.it from: sf.curbed.com

We will have to see if this post impacts the number of Tesla $1000 deposits.

Everything You Need To Know About The Apple 2 Campus

Apple’s brand new $5B spaceship campus will be a pioneer in green technology.

Sourced through Scoop.it from: www.bisnow.com

Holy orchard fruit, Batman!

Silicon Valley apartment rent still rises in Q1 2016, but by a bit less, Real Answers says – Silicon Valley Business Journal

In Santa Clara County, the average asking rent for a one-bedroom apartment reached $2,361, up $23 from the prior quarter and 6.5 percent — or $143 — from a year ago, Real Answers said. The figure represents advertised rents for new leases at larger communities of 50 units or more.

Sourced through Scoop.it from: www.bizjournals.com

I like Nathan’s comment on rentsl  “prices could come back to earth”. Yes, after jumping nearly 10% in most areas and some even higher, some renters will move out to more distant parts of South County and Contra Costa County.  That will slow demand in 2016 but not by much.  However, I will say if Landlords want even higher rents, they will start accepting pets and multiple tenants on a lease. 

Building Wealth: First Rung on the Ladder is Housing

How Housing Matters is a joint project of the Urban Land Institute and the MacArthur Foundation. It is “an online resource for the most rigorous research and practical information on how a quality, stable, affordable home in a vibrant community contributes to individual and community success”.

Sourced through Scoop.it from: www.simplifyingthemarket.com

Long hold real estate is the key.  Recent study from Core Logic showed the United States 91% of homeowners have equity in their home.  Californians? 93%   Grow Equity!

SocketSite™ | Top-Tier Bay Area House Values Slip, Condos Hit New High

That being said, the overall index remains 10.5 percent higher versus the same time last year, 61 percent higher versus January 2010, and the index for condo values has hit a new all-time high.

Sourced through Scoop.it from: www.socketsite.com

The concept of a 30-year mortgage was initially instituted as an affordability option.  Now it is the standard in a mobile society that expects to move every 3-5 years.   A 10-year hold on a real estate investment can be the difference of a millenial decision to buy a house and rent.

$600,000 planning project will prepare Diridon Station for high-speed rail’s arrival – Silicon Valley Business Journal

Caltrain is expected to increase Diridon service after electrification in 2020, and BART is planned to arrive at the station via a tunnel beneath Santa Clara Street by 2025.

Sourced through Scoop.it from: www.bizjournals.com

I hope to see this happen in my life time.  The mass transit improvements may be too little too late but any progress in that direction is absolutey necessary.  Suburbs can help create housing inventory but will only work if there is an efficient way into work.

Bay Area residents love what tech does, hate what it brings, new Charles Schwab survey shows – Silicon Valley Business Journal

The recent study highlights the balancing act that Bay Area locals have to find between having a good quality of life while also getting ahead financially.

Sourced through Scoop.it from: www.bizjournals.com

Great post and not surprising.

Relationship Between Slow Economic Growth and Income Inequality is Tenuous – DSNews

A commentary published by the Cleveland Fed found that slow economic growth has had little effect on income and wealth inequality in the U.S.

Sourced through Scoop.it from: www.dsnews.com

So, if I understand this right, even if lower income workers receive an increase in wages due to an improving economy, it actually creates more inequality because the wealthy experience larger growth than lower income during good times. 

 

The slower the econonmy growth, the less wealth difference? Makes logical sense.  Where’s the model for more wealth equality?  Just curious.

West San Carlos micro apartments proposed for used car lot – Silicon Valley Business Journal

Units would include 379 square feet of living space on the main level plus a 162-square foot mezzanine/loft and a 32-square-foot closet, for a total of 573 square feet of usable space per unit.

Sourced through Scoop.it from: www.bizjournals.com

I like this idea.  Not sure it is “mico” as many 1 bedroom/1 bath condos have about 500 sq ft.  Either way, this opens up a great opportunity for many first time buyers. 

Bay Area has nine of the nation’s 25 ZIP codes with the most expensive houses – Silicon Valley Business Journal

Let’s face it, anytime the 95070 ZIP code (Saratoga) is at the bottom of an expensive list, it’s a very expensive list.

Sourced through Scoop.it from: www.bizjournals.com

If you don’t think millenials will reconsider the suburbs; read on.

How Plunging Oil Prices Threaten the U.S. Economy

Filling up your tank at the gas station has never felt so good, and it’s been a while .BUT The economies of oil-producing states like Texas, North Dakota, Alaska, Oklahoma, Wyoming and New Mexico are being hit by the plummeting prices of crude.

Sourced through Scoop.it from: www.thefiscaltimes.com

It is interesting that many of the areas suffering now, were also some of the same areas that did not get hit as hard by the previous housing crash. Why? Because the local fuel economy was doing very well. Now, we see other parts of the country impacted by oil speculation verses real estate speculation.It is becoming clear, the cyclic nature of markets may be become a faster and more intense highs and lows as we move toward a global village economy.Your thoughts?

Freddie Mac – U.S. Housing Market Continues to Show Strong Improvement

The most improving states month-over-month were Oregon (+2.04%), Colorado (+1.90%), Nevada (+1.88%), Florida (+1.66%) and Maine (+1.55%). On a year-over-year basis, the most improving states were Florida (+15.72%), Oregon (+14.03%), Colorado (+13.54%), Washington (+12.73 %) and Nevada (+12.26%).

Sourced through Scoop.it from: freddiemac.mwnewsroom.com

Caution Will Rogers!

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