The recent IPO for Facebook has everyone all a twitter about how this infusion of
new money will prop up real estate values. This is true for Silicon Value but
Facebook is too far south to have a direct impact on values in the East Bay.
The major economic force that will affect local real estate values is not
The recent decision by San Francisco to cut taxes for new companies that relocate
in the mid-market area downtown has created a boom for office space. Social
media companies like Twitter, Zynga, Yelp and dozens of others have made San
Francisco the epicenter for the social media boom. Thousands of bright new
college graduates are moving to San Francisco every month to fill the new jobs.
These new tech workers will initially live in San Francisco to enjoy its
nightlife and hip vibe. What happens next is predictable.
Young techie meets Ms. techie, they marry and have kids. They realize that San
Francisco is great when you’re young and single but less than ideal to raise a
family. They quickly learn that to find an affordable home with good schools and
low crime they need to look beyond the Caldecott tunnel. BART is the conveyor
that brings these new families to Pleasant Hill, Martinez, Concord, Walnut
Creek and Lamorinda. As the baby boomers retire and downsize we’ll have a fresh
new crop of young families to take their place ensuring constant buyer demand
to help support property values.
