San Francisco Bay Area 2Q15: Entering Uncharted Territory – With Demand and Prices Rising, the Region Still Faces a Lot Shortage – Metrostudy | Housing Starts Here
Annualized new home starts through 2Q15 are down 4% over 2Q14 levels Starts Activity is concentrated in the higher price ranges – 25% of new home starts are priced over $1 million With prices at or above peak pricing, potential buyers may decide to rent: still, the average apartment rental rate has increased 61% since …
Sourced through Scoop.it from: www.metrostudy.com
Lack of building between 2007 and present, places the absorption of homes in the area at about 17 months. In other words, if the world stopped today, all new residential construction would be sold out in about a year and a half. Rents have increased nearly 61% since 2010. Combine with the fact the Bay Area has created nearly 27% of all new jobs in California, in slowing in demand will be minor and most likely temporary.