Thousands of New Millionaires Are About to Eat San Francisco Alive

As the idea of the coming I.P.O.-palooza took on currency, sellers started pulling their houses off the market. The broader California housing market has softened, and home sales are down, but here’s one fix for that.

“Even if just half the I.P.O.s happen, there’s going to be ten thousand millionaires overnight,” said Herman Chan, a real estate agent with Sotheby’s. “People are like, ‘I’m not going to sell till next year, because there are going to be bajillionaires everywhere left and right.’”

One of those is his client Rick Rider, a 61-year-old C.E.O. who decided not to publicly list his Bay Area house until some of the I.P.O.s have happened.

“Our particular house is not a family home. It’s a Double Income No Kids sort of home,” Mr. Rider said. “So it would potentially play well for a lot of the people that would be benefiting from the I.P.O.s.”

The spending wars will likely stay close to work.

“The millennial tech workers are really looking for convenience,” said Christine Kim, the president of Climb Real Estate. “They seem to not want to own cars, and food deliveries are really easy now, and they want to be close to entertainment, so they’ll stay in the city.”

When Google in Mountain View and Facebook in Menlo Park went public, their workers were spread across the Bay Area, and so the impact on housing was diffuse. Now, many of the biggest start-ups are based in San Francisco, in part thanks to the city’s tax breaks. Brokers say San Francisco is where the workers want to stay.

Article source: https://www.nytimes.com/2019/03/07/style/uber-ipo-san-francisco-rich.html

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